Huawei has been dealt another major blow as another company is reportedly suspending business with the Chinese company.
ARM has told its staff that its halting its business with Huawei, a move that comes as a result of the recent U.S. trade ban. According to the BBC, ARM has told its employees to pause “all active contracts, support entitlements, and any pending engagements” with Huawei. An internal company memo notes that its designs include “U.S. origin technology”.
In a statement, ARM said that it is “complying with all of the latest regulations set forth by the U.S. government.”
Huawei issued a statement of its own on the matter, saying, “We value our close relationships with our partners, but recognize the pressure some of them are under, as a result of politically motivated decisions. We are confident this regrettable situation can be resolved and our priority remains to continue to deliver world-class technology and products to our customers around the world.”
This is another big blow to Huawei, as ARM’s chip designs are used by companies to make their mobile processors. This includes Huawei, who uses ARM designs to make its Kirin processors. Without ARM’s designs, Huawei will have a very difficult time making processors for its smartphones.
A recent report said that Huawei has stockpiled enough chips and other components to keep it running for three months. But if this U.S. trade ban goes on for long, Huawei could have a very difficult time keeping its smartphone business going.
In other news, U.K. carrier EE has pulled Huawei phones from its upcoming 5G launch lineup of products. “We’ve put the Huawei devices on pause, until we have more information,” said Marc Allera, head of EE owner BT’s consumer division. “Until we have the information and confidence that ensures our customers will get support for the lifetime of their devices with us then we’ve got the Huawei devices on pause.”