Huawei is indeed going through the worst period in the company’s history as just days after Google suspended some of its businesses with the firm, UK-based chipset designer ARM has also told its staff to halt its business dealings with the Chinese smartphone maker, putting Huawei chipset business in trouble.
According to the internal documents obtained by the BBC, ARM has asked its employees to put a pin on “all active contracts, support entitlements, and any pending engagements” with Huawei and its subsidiaries in lieu of the recent policy of US government to blacklist the mobile phone company.
The employees were further told that they were also not authorized to “engage in technical discussions, or otherwise discuss technical matters with Huawei, HiSilicon or any of the other named entities.” ARM believes that it is also affected by the Trump administration’s recent ban because its designs contain US-origin technology.
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It is a major blow to Huawei chipset business because even though it develops its own chipsets, it still relies on ARM’s underlying technology and pays a license for certain architectures and designs. The suspension of business between the two firms will have a huge impact on Huawei’s ability to develop its own smartphones and other devices.
US’ government has already delayed some of the restrictions for 90 days but reportedly, ARM will not be working with the Chinese firm even in this extended time period.
Until now, no statement has been issued by the Chinese smartphone maker regarding this issue.