USA Imposes Export Ban TSMC and Qualcomm are no longer allowed to supply Huawei

US Huawei ban

Chip manufacturers working with American software and technology are no longer.

The US is pursuing a trade dispute with China and cutting Huawei’s access to American semiconductor technology. In return, China threatens to impose restrictions on Cisco, Apple or Boeing.
In the future, Huawei will have to do without chips manufactured in the USA. Chip manufacturers working with American software and technology are no longer allowed to sell their products to the company, reports the news agency Reuters. The US Department of Commerce had put into effect a corresponding export regulation on Friday.

China reacted promptly. If the US makes its announcement true, China will react with restrictions for companies like Qualcomm, Cisco and Apple, the Chinese newspaper The Global Times reports. The purchase of Boeing aircraft could also be stopped.

Increasingly severe sanctions
Only two days earlier, Donald Trump had extended the US sanctions against China until 2021. By decree, he banned transactions between US corporations and foreign corporations that could jeopardize the national security of the US. Thus, Huawei must continue to do without Google services.With the export stop for chips, Trump has now continued.

China’s impending countermeasures would remind the US that the US must pay a high price for suppressing Huawei," writes the Global Times, which is close to the Chinese ruling party.

TSMC is no longer allowed to sell its chips to Huawei.

Scheme also harms TSMC and Qualcomm
Huawei is not the only company affected by the American scheme. The Taiwanese chip manufacturer TSMC uses hardware that is protected by US patents and uses equipment from US companies. This means that TSMC is no longer allowed to sell its chips to Huawei.

Also for the mobile phone chip manufacturer Qualcomm, whose processors Huawei uses for some of its devices, the export ban removes a source of income. Both Qualcomm’s and TSMC’s shares fell by about two percent, as Reuters reported.

For ordered goods that are already in production, a period of 120 days applies. Chipsets, which are already in production by Friday, can still be delivered for that long.