Fresh US sanctions will deny Huawei access to chipmakers, dealing a “fatal blow” to the Chinese giant, one expert says.
Eurasia Group head of geotechnology Paul Triolo wrote on Monday (8/17) that Washington’s latest round of sanctions is “potentially (the) most serious effort by the US government to choke off the company’s ability to obtain advanced semiconductors for all of its business lines.”
The restrictions require foreign semiconductor firms to be granted a permit before selling products using US technology to Huawei, which has become a surrogate for worsening relations between the US and China.
TikTok, another Chinese-owned tech brand, has also come into the crosshairs of the Trump administration. A looming ban on the popular video app has prompted takeover talks with US firms. Today Oracle announced it was “in talks” to buy the company’s American operations.
Huawei has repeatedly denied White House claims its technology is being used to spy on US citizens. That hasn’t stopped Trump’s government slapping yet more sanctions on the Beijing-headquartered company, which is also facing battles over 5G technology in Europe.
The latest ruling effectively stops Huawei buying chips from firms like Taiwan Semiconductor Manufacturing Company and compatriot firm MediaTek. Stocks in the companies plunged upon news of the sanctions.
Huawei’s plight will also affect US suppliers. “These broad restrictions on commercial chip sales will bring significant disruption to the US semiconductor industry,” John Neuffer, president and CEO of the Semiconductor Industry Association, an American interest group, told CNN.