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 Reuters report, senior officials in the Trump administration have agreed to new measures that aim to restrict the global supply of chips to the Chinese company.

“The rule-change is aimed at curbing sales of chips to HUAWEI by Taiwan Semiconductor Manufacturing Co, a major producer of chips for Huawei’s HiSilicon unit,” the report 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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