Huawei is already licking its wounds after being prohibited from using Google services on its phones following a blanket trade ban. But the situation might worsen further, as the U.S. government might soon block the supply of chips to the Chinese company.
The U.S. government is reportedly mulling a change to the trade regulations that would allow it to block chip shipments to Huawei. The Trump administration reportedly wants to cut Huawei’s supply chain linked to TSMC, the world’s largest contract chipmaker.
“What they’re trying to do is make sure that no chips go to Huawei that they can possibly control,” a person familiar with the matter was quoted as saying. While the proposal is pending approval as of now, if passed, it would deal a major blow to Huawei as it relies on TSMC for its HiSilicon Kirin chips.