Chip designer ARM halts work with Huawei after US ban

ARM employees have been instructed to suspend business with Huawei Report

The BBC has reported that ARM, owned by Japan's Softbank, had instructed employees to halt "all active contracts, support entitlements, and any pending engagements" with Huawei. But ARM said its products rely on tech from the US, so it has to abide by its regulations.

Arm's staff were also told they were not permitted to "engage in technical discussions, or otherwise discuss technical matters with Huawei, HiSilicon or any of the other named entities". The move has dire consequences for Huawei's smartphone ambitions, as ARM's technology forms the foundation of HiSilicon's Kirin chipsets. According to a report from the BBC, ARM has told its employees the United States export ban means it can no longer work with Huawei, dealing a crippling blow to Huawei's SoC division, HiSilicon, and to Huawei's ability to create smartphone chips in the future.

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Huawei, in common with Apple and chipmakers such as Qualcomm, uses ARM blueprints to design the processors that power its smartphones.

The United States blocked Huawei from buying USA goods last week, jeopardizing ties with Google, which provides the Android operating system and services like Gmail and Google Maps, as well as hardware partners such as ARM. ARM has more than 40 offices around the world, including eight in the US.

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If enforced, the move could make things very challenging, to say the least, for Huawei as the company figures out ways limit its dependencies on American component suppliers in order to stay in business. Huawei has offered no comment at this time. At the same time, Huawei was put on the US government's "Entity List" - a list of companies which can't conduct business in the USA with government approval. "We are confident this regrettable situation can be resolved", they added.

The sky has been falling recently for Huawei, the Chinese tech firm that has been accused of having ties to the Chinese government. Huawei, for its part, has said it would never allow this. These licenses are critical to the development of smartphone CPUs in GPUs - the vast majority of smartphone makers use Arm's designs.

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As a result, Google ceased providing Android updates to Huawei and banning new Chinese devices from using Google services, such as YouTube and Maps.

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