Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Jaltech backs solar firm Wetility in R500-million capital raise

      18 June 2025

      MTN CEO edges Vodacom rival in pay stakes – but just barely

      18 June 2025

      Stolen phone? Samsung now buys you an hour to lock it down

      18 June 2025

      New MD for Dell South Africa

      18 June 2025

      How a dowdy database maker became an investor darling

      18 June 2025
    • World

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025

      Yahoo tries to make its mail service relevant again

      13 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Electronics and hardware » US moves to cut off Huawei from global chip suppliers

    US moves to cut off Huawei from global chip suppliers

    By Agency Staff15 May 2020
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Image: Toby Melville, Reuters

    The Trump administration on Friday moved to block shipments of semiconductors to Huawei Technologies from global chip makers, in an action that could ramp up tensions with China.

    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”.

    The department added the “announcement cuts off Huawei’s efforts to undermine US export controls”.

    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.

    Huawei, which needs semiconductors for its widely used smartphones and telecoms equipment, is at the heart of a battle for global technological dominance between the US and China.

    The US is trying to convince allies to exclude Huawei gear from next-generation 5G networks on grounds its equipment could be used by China for spying. Huawei has repeatedly denied the claim.

    Licence required

    Huawei has continued to use US software and technology to design semiconductors, the commerce department said, despite being placed on a US economic blacklist in May 2019.

    Under the rule change, foreign companies that use US chip-making equipment will be required to obtain a US licence before supplying certain chips to Huawei, or an affiliate like HiSilicon.

    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 commerce department said 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. Chipsets would need to be in production by Friday or they are ineligible under the rule.

    The US placed Huawei and 114 affiliates on its economic blacklist citing national security concerns. That forced some US and foreign companies to seek special licences from the commerce department to sell to it, but China hawks in the US government have been frustrated by the vast number of supply chains beyond their reach.

    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. It warned it expected this would be the final extension. Reuters first reported the administration was considering changes to the Foreign Direct Product Rule, which subjects some foreign-made goods based on US technology or software to U.S. regulations, in November.

    Most chip manufacturers rely on equipment produced by US companies like KLA, Lam Research and Applied Materials, according to a report last year from China’s Everbright Securities.

    Series of steps

    The Trump administration has taken a series of steps aimed at Chinese telecoms firms in recent weeks.

    The US Federal Communications Commission last month began the process of shutting down the US operations of three state-controlled Chinese telecoms companies, citing national security risks. The FCC also in April approved Google’s request to use part of a 13 000km undersea telecoms cable between the US and Taiwan, but not Hong Kong after US agencies raised national security concerns.

    This week, President Donald Trump extended for another year a May 2019 executive order barring US companies from using telecoms equipment made by companies deemed to pose a national security risk, a move seen aimed at Huawei and peer ZTE.  — Reported by David Shepardson, (c) 2020 Reuters



    Apple Donald Trump Huawei Qualcomm top TSMC Wilbur Ross
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleDimension Data is set to retrench 480 employees
    Next Article Facebook buys GIF website Giphy to integrate with Instagram

    Related Posts

    Stolen phone? Samsung now buys you an hour to lock it down

    18 June 2025

    Trump Mobile dials into politics, profit and patriarchy

    17 June 2025

    Samsung plots health data hub to link users and doctors in real time

    17 June 2025
    Company News

    Disrupt first, ask questions later – the uncomfortable truth about incident response

    18 June 2025

    Sage brings together HR leaders to explore the future of payroll and people management

    18 June 2025

    Altron: a brand journey, a birthday celebration and a bet on Joburg’s future

    17 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.