Huawei suffers as U.S toughen restrictions on chip supply

The United States has closed off Huawei’s access to vitally advanced computer chips, dealing the Chinese tech champion a deadly blow. The U.S. Department of Commerce proposed new restrictions that would prohibit any overseas semiconductor firm from exporting chips created by Huawei using U.S. software or technologies, without acquiring a license. 

Up to now, Huawei smartphone owners with full Google services on their devices have fled any problems arising from the US. Government putting Huawei on its List of Entities. This list prevents US companies from providing the Chinese brand with hardware and software, something that includes Google. 

It’s also the latest indication that President Donald Trump is raising pressure on Beijing while the U.S. and China are competing for who is regulating emerging technology. The Trump administration has threatened bans on popular Chinese-owned TikTok and WeChat apps over the past three weeks, signaling it could soon limit the operations of Alibaba in the U.S. 

Focusing on the rising demand in Europe , Asia , Africa and China, Huawei is the largest switching equipment maker and a global smartphone company. But now Huawei Technologies Ltd. is suffering seriously, as in its ongoing conflict with Beijing over technology and security, Washington deepens a campaign to shut the door on access to foreign markets and components. 

Several Taiwan-based Chip design houses and suppliers of power semiconductor devices have stated that their sales targets for 2020 stay constant given recent reports that Huawei and ZTE have slowed down their buildups of 5 G base stations, which according to industry sources could affect their businesses.  

MediaTek has also said, in the short term, it expects no major effect from US trade curbs on its company activities. Meanwhile, the Trump administration ‘s possible sanctions on WeChat might damage Huawei’s competitor Apple (AAPL).Huawei was barred from 5 G networks by Australia. Japan, Taiwan and others restrict Huawei technology.