US tightens restrictions on Huawei's chip supply
The Commerce Department moved Friday to further restrict Chinese telecoms giant Huawei's access to US technologies, targeting its chip supply. The department said it was moving to "narrowly and strategically target Huawei's acquisition of semiconductors that are the direct product of certain U.S. software and technology."
- World
- AP
- Published Date: 07:22 | 15 May 2020
- Modified Date: 07:22 | 15 May 2020
The U.S. government is imposing new restrictions on Chinese tech giant Huawei by limiting its ability to use American technology to build its semiconductors.
The Commerce Department said Friday the move aims to cut off Huawei's undermining of existing U.S. sanctions.
The new restriction is separate from an ongoing Trump administration reprieve on U.S. technology sales to Huawei. The U.S. government blacklisted the Chinese tech company a year ago, deeming it a national security risk, but the limited reprieve allows wireless companies to keep offering service in remote parts of the U.S.
The Commerce Department said this week that reprieve is being extended for another 90 days.
But numerous loopholes have been exploited, especially as U.S. companies continued to supply Huawei with chips made outside the United States. The Commerce Department said the new restriction will "narrowly and strategically" target Huawei's acquisition of semiconductors built in overseas foundries but using U.S. software and technology.