ARM cuts ties with Huawei in a devastating blow

Ivan, 22 May 2019

The ripple effect caused by the US-imposed trade clampdown is continuing to spread, this time affecting chip designer ARM.

The UK-based firm has reportedly sent a memo to employees to cease "all active contracts, support entitlements, and any pending engagements" with Huawei because of "US origin technology" in ARM's designs.

ARM has officially stated only that it is "complying with all of the latest regulations set forth by the US government". Huawei also issued a comment on the situation, seen below.

ARM's technology is the foundation for most mobile chipsets and without it Huawei wouldn't be able to develop its own chips.

As such this is a huge blow to Huawei and described by one analyst as "insurmountable".

The US put Huawei on its Entity List, meaning all US companies (like Google) are disallowed from trading with it Huawei. The US later postponed the ban for 90 days allowing Huawei some access to American-made goods to some degree.

Here's a who stands to gain and who will lose the most because of the situation.

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Reader comments

  • altich

You could turn this remark around... US friendly nations? What does that mean? It means the nations that the US made dependent of them as a part of the US mater plan in terms of dominance. The last 20 years this dominance started to crumble due t...

  • Anonymous

China underestimated America's influence to friendly nations around the globe. Meanwhile China is building enemies rather than friends with its deceptive business practices and unreasonable seizures of areas which she does not owned.

  • nico

Nah. US is showing what they got so they can pressure China. It doesn't matter how many guns you got at home if you can't use them when it's time to fight.

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