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With US trade ban more tech firms cut ties with Huawei

The US President Donald Trump on May 15 had effectively banned Huawei with a national security order and publicly asked its allies for not using Huawei products with concerns of obtaining private information.

India TV Tech Desk India TV Tech Desk
New Delhi Published on: May 23, 2019 18:48 IST
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With US trade ban more tech firms cut ties with Huawei

According to media reports, followed with the US trade ban against Chinese companies, Panasonic the Japanese tech major and UK-based chip designer ARM have "suspended transactions" and cut ties with Huawei.

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BBC quoted the company as saying on Thursday, "Panasonic announced in an internal notification that it should suspend transactions with Huawei and its 68 affiliates that were banned by the US government". 

The Japanese company later appeared to contradict that position with a statement that was posted on its China website saying the company was continuing supplies to Huawei.

According to the company, the ban applied to goods having 25 per cent or more of US-originated materials, but did not clear what transactions Panasonic was suspending, or why they were subject to US restrictions.

BBC reported on Wednesday, saying that its design contained "US origin technology," ARM instructed employees to halt "all active contracts, support entitlements, and any pending engagements" with Huawei and its subsidiaries.

With ARM's decision of breaking off with Huawei, the decision would affect the Chinese tech company's ability to develop its own chips that are majorly built with ARM's underlying technology, for which it pays a licence fee.

US President Donald Trump on May 15 had effectively banned Huawei with a national security order.

The US publicly asked its allies for not using Huawei products with concerns of obtaining private information.

Followed with the clampdown, many tech majors like Google, Intel, Microsoft and Qualcomm had put restrictions on doing business with Huawei.

(With IANS inputs)

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