The US commerce department said it was amending an export rule to “strategically target Huawei’s acquisition of semiconductors that are the direct product of certain US software and technology”.
Huawei has continued to use US software and technology to design semiconductors, the commerce department said
The rule change is a blow to Huawei, the world’s second largest smartphone maker, as well as to Taiwan’s TSMC, a major producer of chips for Huawei’s HiSilicon unit as well as mobile phone rivals Apple and Qualcomm.
In order for Huawei to continue to receive some chipsets or use some semiconductor designs tied to certain US software and technology, it would need to receive licences from the commerce department.
Huawei’s P30 Pro smartphone
The rule change is to “prevent US technologies from enabling malign activities contrary to US national security and foreign policy interests”, commerce secretary Wilbur Ross said in a statement, adding Huawei and its affiliates “have stepped up efforts to undermine these national security-based restrictions”.
The rule will allow wafers already in production to be shipped to Huawei as long as the shipments are complete within 120 days from Friday
Separately, the commerce department extended a temporary licence that was set to expire on Friday to allow US companies, many of which operate wireless networks in rural America, to continue doing business with Huawei through to 13 August.
