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Intel, Qualcomm and other U.S tech firms cut off supplies to Huawei (Updated)

By Cookie Monster & Marcus Wong - on 31 May 2019, 2:00pm

Intel, Qualcomm and other U.S tech firms cut off supplies to Huawei

Updated on 31st May, 11:32am:

Huawei has just released a statement saying that they've been reinstated in the following tech associations:

  • SD Association here
  • Wi-Fi here
  • Bluetooth
  •  Android Beta Q here (for Huawei Mate 20 Pro only as of now, discussions are still ongoing)

No other details have been published yet, but it seems we may be finally coming to the end of this thorny situation. 

Originally reported on 20th May, 12:19pm

Following news of Google suspending Huawei's Android license, Bloomberg reports that other top U.S tech companies are doing the same to comply with the Trump administration's ban.

Sources told Bloomberg chipmakers such as Intel, Qualcomm, Xilinx and Broadcom have told their staff that they will not be supplying Huawei until further notice.

The latest moves by U.S tech companies threaten to choke off Huawei. Intel is the main supplier of server chips for Huawei while Qualcomm supplies processors and modems for some Huawei phones. Xilinx and Broadcom sells key components and chips of networking equipment used by Huawei. 

Huawei “is heavily dependent on U.S. semiconductor products and would be seriously crippled without supply of key U.S. components,” said Ryan Koontz, an analyst with Rosenblatt Securities Inc. The U.S. ban “may cause China to delay its 5G network build until the ban is lifted, having an impact on many global component suppliers.”

Huawei has anticipated this move since at the least mid 2018. The Chinese company reportedly stockpiled chips and other essential components to keep its business running for at least three months. It also invested in developing its own processors.

Source: Bloomberg

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