As the United States’ criticism of China over coronavirus takes pace, the Trump government has decided on introducing new measures to restrict the worldwide supply of chips to Huawei Technologies. Under the new measures being imposed, foreign companies, that make use of US chipmaking equipment, would be required to obtain an all approved US license prior to their chips supply to the smartphone maker.
This move comes ahead of the souring ties between Washington and Beijing, with the two sides exchanging spikes over who is to be blamed for the coronavirus outbreak and expulsion of media persons from the two nations.
Moreover, an official source reported that the new measure is aimed at restricting the sales of chips to Huawei and not any other semiconductor company.
There are various companies like Lam Research and Applied Materials, KLA, and more, which could be largely impacted by this move as they massively rely on equipment produced by the States.
According to reliable reports, the decision was withheld in a meeting conducted to alter the Foreign Direct Product Rule, that observed participation of US officials from various agencies. It has been reported that attendees included top officials from the US Departments of State, Energy, Defense and Commerce, and the National Security Council.
However, the president’s take is yet to be announced on the matter. If approved by Donald Trump, the measure may cause a drastic impact to the world’s top notch smartphone maker, Huawei, and also a major producer of chips for its HiSilicon unit, Taiwan Semiconductor Manufacturing.
Speaking on the matter, the former Commerce Department official and Washington lawyer, Kevin Wolf cited that it is near to impossible for the administration to predict the impact of the measure being imposed until the details of technical thresholds are known.
This restriction is claimed to have a negative impact on Beijing, which has spoken against a worldwide campaign by the US to compel allies to remove Huawei from their 5G networks concerning the spying alerts.