Chip designer ARM has suspended trading with Huawei and threatens the ability of the Chinese company to make its own chips. BBC news reports that ARM employees have been instructed to "cease all active contracts, support rights and any current agreements" with Huawei due to the US trade ban. The US has banned US companies from doing business with the Chinese telecom giant without permission from the US government, but ARM is based in the UK and is owned by the Japanese SoftBank group.
ARM is concerned that it is influenced by the American ban, with an internal memo that shows that chip designs also include "US origin technology". Huawei relies on ARM for chip architecture designs for its own Kirin processors, and it pays to license them. Without the licenses, Huawei will not be able to continue to produce its own processors using ARM designs and its HiSilicon-fabless semiconductor company.
It is not clear whether ARM simply responds cautiously to the US Commerce Department's order, or whether it has been advised to immediately stop doing business with Huawei. If the latter is the case, the decision of ARM can be reflected by other semiconductor companies that also supply Huawei.
Huawei has reportedly stored enough parts in the US to last a long time three months to a yearso it might have enough to keep working. That stock will run out at some point in the future, especially on parts that are severely limited in supply lines. Huawei currently relies on American manufacturers such as Micron, Skyworks and Qorvo who provide storage and network components for some of Huawei & # 39; s phones.
Even without access to these important components, Huawei faces a challenge, but without ARM & # 39; s architectural designs or instruction sets, it is an almost impossible task to make a smartphone without US technology in it.