On Monday, Google and major US chipmakers suspended Huawei's critical software and hardware components due to the US Black List. Today, Arm Holdings, the British chip designer owned by SoftBank, is a suspended business with Huawei.
The company instructed employees to stop "all active contacts, support rights and any pending commitments" with Chinese telecommunications, the BBC reported to adhere to US trade restrictions.
"Arm follows all the latest US government regulations," a CNBC spokesman said via e-mail, but refused to comment further.
The news is a new blow to Huawei, who has faced intense political pressure from Washington over national security issues. The US administration has recently added the company to a trading blacklist that blocks it from buying US technology without special approval. For more, read the full CNBC report here.
The BBC who broke the story added that "An analyst described the move, whether it was long-term, as an" insurmountable "blow to Huawei's business.
He said it would have a major impact on the company's ability to develop its own chips as its Kirin chip, which is currently built with ARM's underlying technology for which it pays a license.
Geoff Blaber, from CCS Insight told the BBC that "ARM is the foundation of Huawei's smartphone chip design, so this is an insurmountable obstacle to Huawei. Hatt said, with an abundance of companies in the Huawei supply chain that had already taken steps to comply with US orders , Huawei's ability to operate was already heavily influenced. "For more on this, read the full BBC report here.
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