According to the Reports obtained by the BBC, UK Based chip designer ARM has directed its employee to stop all the contracts and suspend business with the Huawei and its all subsidiary brands.
The internal document obtained by BBC says that “all active contracts, support entitlements, and any pending engagements” with Huawei and its subsidiaries to comply with a recent US trade clampdown.
Even though ARM is a UK based company, many of its technologies are US origin, that means US-based Huawei restriction applies to Huawei Technology. All the other US-based companies like Google, Intel, Microsoft suspended its business with the Huawei and ARM joins the list.
The memo mentioned that due to an ‘unfortunate situation’ the company will no longer be able to “provide support, delivery technology (whether software, code, or other updates), engage in technical discussions, or otherwise discuss technical matters with Huawei, HiSilicon or any of the other named entities.”
Huawei is making its own Hi-Silicon chipset which uses the technology from the ARM and this can give huge damage to the company since they don’t have any alternatives at the moment. This decision will not harm existing Hi-Silicon chipset and even the upcoming Hi-Silicon 985 is unaffected but the company can’t make powerful chipset without the help of ARM technologies.