Major U.S. chipmakers—including Intel, Qualcomm, Xilinx and Broadcom—will stop supplying Huawei with chips following the Trump administration’s blacklisting of the Chinese tech giant on Friday. The U.S. has the strongest semiconductor market in the world, and limiting Huawei’s access will likely hurt it across its many business segments, including its part in rolling out China’s next-generation of cellular networks, called 5G.
Huawei has been fast trying to build up its own chipmaking capabilities with its HiSilicon business unit to reduce its dependence on outsiders, but Huawei is still highly dependent on the U.S. chip industry. The company’s telecommunication networking group, for example, relies on access to the specialty laser components needed to route information, as Reuters recently reported.
That industry is dominated by U.S. players.