The US Commerce Department has just made it harder, rather impossible for Huawei to access high-end chips for its future smartphones. The department announced the expiration of Huawei’s license and also added 38 new companies that are linked to Huawei to the Entity List. These restrictions leave Huawei with no proper chip maker that’s capable of catching its pace.
The US Adds 38 New Companies of Huawei to Entity List
May the US is forcing Huawei to run out of the smartphone business, as it’s doing everything to knockout the every chip supplier somehow. Today, the Department of Commerce has announced that the extended license granted to Huawei in May has expired.
Also, it defined more clearly about how it’s restricting companies in supplying chips to Huawei.
It said, “transaction involving items subject to Commerce export control jurisdiction where a party on the Entity List is involved, such as when Huawei (or other Entity List entities) acts as a purchaser, intermediate, or end-user.”
This describes that Huawei or its subsidiaries of any kind listed in entity list are barred from obtaining goods produced using US technology.
We’ve seen US restricted TSMC, a major supplier of chips to both Qualcomm and Huawei being barred from manufacturing chips to Huawei. This leaves Huawei’s next flagship, Mate 40 to be the last handset to sport a high-end chip, thus shuttering down the curtains of Huawei’s smartphone business unless it finds an equivalent supplier.
Further, the Commerce Department has also mentioned 38 new companies that are linked to Huawei and added them to the Entity List. The department sought companies of such may help Huawei obtain chips someway, thus blocked them too. We shall see how these grueling situations grow in the future.