United Kingdom chipmaker ARM reportedly cutting ties with Huawei

May 25, 2019, 00:29
United Kingdom chipmaker ARM reportedly cutting ties with Huawei

In a statement, the company said: "Panasonic has instructed employees to halt transactions with Huawei and its 68 affiliates covered by the US ban".

"Yesterday an internal instruction to fully enforce that rule was issued", he added.

Jia Mo, an analyst at Singapore-based market research company Canalys, said the delayed product releases in certain markets will harm Huawei's smartphone business, but Huawei is working on its own mobile operating system, which can help relieve some pressure in the domestic market. For those that are not aware, the companies deemed to be a part of activities that threaten the foreign policy interests or national security of the U.S. are placed on the Entity List - an export blacklist.

"Today, Huawei, we are still committed to Microsoft Windows and Google Android", Richard Yu, head of Huawei's consumer business, told CNBC.

SoftBank's low-priced mobile brand, Ymobile, and other Japanese telcos have said they will delay the launch of Huawei smartphones due to go on sale on Friday.

"You got one of the most technically competent companies in the world, Huawei, building one of the most complex electronic machines that has ever been built by man, and we just yanked the critical components out of that machine", he said during an interview on "Cavuto: Coast-to-Coast" Thursday.

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The group also said it would phase out the use of Huawei equipment in the most sensitive "core" elements of its network infrastructure.

The BBC reported on Wednesday that ARM had instructed employees to halt "all active contracts, support entitlements, and any pending engagements" with Huawei.

"All our backup products are now being put to use, our long-term efforts will ensure continuous product supply", said Ren Zhengfei "We sacrificed [the interests of] individuals and families for the sake of an ideal, to stand at the top of the world".

Last week, President Donald Trump signed an executive order declaring a national emergency over foreign threats against America's information and technology sector.

"We are now trying to confirm if our customers will be able to use the equipment with a sense of safety", SoftBank spokesman Hiroyuki Mizukami told AFP. KDDI and SoftBank Corp, also two of Japan's biggest telcos, had followed suit in halting orders for Huawei smartphones.

Japanese conglomerate Panasonic Corp. joined a growing list of global companies which have said they are disengaging from Huawei Technologies Co.

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USA officials this week, however, issued a 90-day stay on the ban, saying breathing space is needed to avoid huge disruption.

"We are no longer accepting Huawei phones".

When asked for its response, Huawei pointed to a statement on Panasonic's Chinese website that said the firm was supplying Huawei "normally" and "strictly abiding by the relevant laws and regulations of countries and regions where Panasonic is present".

Some analysts said the U.S. moves against Huawei will lead to strong support for the unlisted Chinese firm as Huawei is working hard to offset the fallout of the restrictions.

The spokesman further noted that USA society already has doubts about the necessity of a trade war with China in light of the costs associated with it. Lu Kang argued that Washington "fabricates lies" to mislead American citizens and incite "ideological opposition".

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