It's not even been a day since Google announced that it was pulling off support for some of its services from being accessed by Huawei devices than we have more news on that front. US chip giants Intel, Qualcomm, Broadcom and Xilinx have also pulled off from supplying vital components for Huawei devices.
According to a report by Bloomberg, the chipmakers Intel, Qualcomm, Broadcom and Xilinx have told their employees that >they will not be providing Huawei with supplies until further notice.
Intel is a major chipset provider to Huawei for its laptop line as well as provides server chips to Huawei. Qualcomm provides Huawei with modems and processors for many of its smartphones, irrespective of Huawei having its own HiSilicon Kirin chipsets. Xilinx sells programmable chips which are used in networking. Broadcom supplies Huawei with switching chips which is critical for networking equipment. To cut a long story short, each of these chip suppliers has a major role to play in Huawei products.
According to analysts quoted by Bloomberg, this ban could prevent the quicker rollout of 5G networks in China as Huawei is heavily dependent on US semiconductor products. At the same time, Huawei is said to have stockpiled chips and other major components that will last it for three months at least, by when we should get a more clear idea as to whether this ban is here to stay or there will be a resolution on this.
Google has suspended business with Huawei that requires the transfer of hardware and software products except those covered by open source licenses, a source close to the matter told Reuters on Sunday, in a blow to the Chinese technology company that the US government has sought to blacklist around the world.
These restrictions are to comply with the Trump administration's blacklisting of Huawei and 70 affiliate companies from dealing with US companies. Under the order, Huawei will need a US government license to buy American technology. This decision is the culmination of the Trump administration's reservations against using Huawei's next-generation 5G networks as it feels that Huawei's close ties with the Chinese government could be detrimental and lead to cyber espionage. Trump administration also imposed new tariffs on Chinese goods amid an escalating trade war.