Other US companies will likely join with the ban
Huawei’s world is getting smaller, as three other US-based companies are reportedly complying with the US Govt’s ban on Huawei. Bloomberg is reporting that Intel, Qualcomm, and Broadcom are cutting off the supply of their chips to the company, effective immediately. This comes in the heels of a potentially crippling ban against Huawei using Google’s technology to power their phones.
Bloomberg reports that employees across the three chipmakers have already been informed that they are freezing deals with Huawei until further notice.
Huawei won’t be affected too much by the Broadcom and Qualcomm ban, as the company already makes its own in-house processor and modems for its phones for just this eventuality. The biggest problem now is for Huawei’s notebook business, as the company is still reliant on Intel for their chips. Intel’s processors also power its servers, so that’s a potential trouble spot moving forward.
Huawei hasn’t been caught flat-footed though, as the company reportedly has chip stockpiles from its US suppliers to last it three months. That’s long enough to know if this is yet another scare tactic to get the Chinese government back to the negotiating table or a permanent measure by the US government.