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U.S. prepares to choke global chip supply to HUAWEI: Report

By Nadeem Sarwar March 27, 2020, 4:00 pm

Ever since the U.S. government placed HUAWEI on the entity list, the company has been bleeding revenue and seeing a drastic fall in sales due to lack of Google services on its phones. The U.S. government is now looking to choke the global supply of chips to HUAWEI.

As per a Reutersreport, senior officials in the Trump administration have agreed to newmeasures that aim to restrict the global supply of chips to the Chinesecompany.

“The rule-changeis aimed at curbing sales of chips to HUAWEI by Taiwan SemiconductorManufacturing Co, a major producer of chips for Huawei’s HiSilicon unit,” thereport says.


Under the proposed rules, foreign companies that utilize chipmaking equipment from American companies will first have to obtain a government license before they can sell chips to HUAWEI.

Source: Reuters


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