Huawei is in very deep trouble. The BBC has learned that ARM sent out a company memo telling its staff to halt “all active contracts, support entitlements, and any pending engagements” with the Chinese electronics giant due to the US government’s export ban.
The decision could effectively cripple Huawei, as its smartphones, servers, and 5G base stations utilize chips built with ARM’s underlying technologies. Without a license, Huawei would have to find a way to build new, unique processors.
ARM’s designs form the basis of most mobile device processors worldwide. In a company memo, it said its designs contained “US origin technology”. As a consequence, it believes it is affected by the Trump administration’s ban. One analyst described the move, if it became long-term, as an “insurmountable” blow to Huawei’s business.