U.K.-based chip designer Arm has suspended its business with Huawei, following the U.S. government’s recent decision to block the Chinese tech giant’s access to American technology, a person familiar with the development said. The move, which was first reported by BBC News, effectively blocks Huawei’s future access to Arm’s designs, which are used in virtually all mobile processors in the world.
“This is catastrophic,” a Huawei manager who works in the company’s HiSilicon semiconductor unit told The Information. Losing access to Arm means HiSilicon may not be able to continue developing its homegrown chips, which power the majority of Huawei phones. The U.S. sanctions, which were announced last week, already prevent Huawei from buying mobile chips from Qualcomm. “I’m speechless,” the Huawei manager said.
Arm told its employees in an internal memo that its designs contained “U.S. origin technology,” BBC earlier reported, indicating that the decision to block Huawei was triggered by the U.S. sanctions.
“We value our close partnership with our partners, but recognize the pressure some of them are under, as a result of politically motivated decisions,” Huawei said in a statement.