US chip makers such as Intel, Qualcomm, Broadcom and Xilinx have reportedly informed their staff that they are complying with the US government’s trade ban and are ceasing deliveries to Huawei.
The cessation of chip deliveries is effective immediately and will remain in effect until further notice, according to Bloomberg’s report. The ban on deliveries follows the news that Google has revoked Huawei’s Android license. However, existing devices will still have access to the Play Store and Play Protect protection, Google later reported.
The ban has major consequences for Huawei. Intel supplies, among other things, Xeon processors for servers in Huawei data centers, while Qualcomm supplies modems for network equipment and smartphones. Huawei does make its own HiSilicon Kirin processors for its smartphones. Xilinx supplies FPGAs to the Chinese company and Broadcom also supplies chips for Huawei’s network equipment. It is unclear what the stop on deliveries will mean for Huawei’s plans to build 5G networks worldwide.
In recent months, Huawei is said to have built up chip stocks on a large scale, apparently in the run-up to an expected trade ban, Bloomberg reports. The Chinese tech company has been stocking components since at least mid-2018.
Last week, US President Trump issued an order banning US tech companies from doing business with Huawei. To do that, they need government permission. Trump invokes US national security for the order. It is a ban on the sale or supply of information or communication technology that could endanger US national security.