US government officials agree to cut off Huawei from global chip suppliers

Senior US government officials have agreed to new rules to cut off Huawei from global chip suppliers, according to Reuters report, citing sources familiar with the matter.

Under the new measures, foreign companies that use American chipmaking equipment would first need to secure a license before supplying some chips to Huawei, the report says. The focus of the new rules is to restrict the sale of more sophisticated chips to the Chinese telecom giant rather than generic, more widely available chips.

The move by the Trump administration comes as the White House and Beijing have increasingly traded blame over the spread of the novel coronavirus, which as of Thursday has infected 82,400 people — the highest number of cases globally, surpassing China’s 81,700. 

US President Donald Trump hasn’t signed off on the proposed new measures yet, but if he does, a slew of US tech companies stand to lose like Apple and Qualcomm along with Huawei. It could also negatively impact the world’s largest chipmaker, Taiwan’s TSMC, the report says.

Last May, the US slapped the Chinese telecom giant with a trade ban over fears its equipment can be used by spying for espionage. Huawei has repeatedly denied the allegations.   

Huawei couldn’t immediately be reached for comment.