U.K. tech firm Arm has told its staff to halt business deals with Huawei, according to the BBC citing internal documents it has seen.
The chip maker has apparently told employees to pause “all active contracts, support entitlements, and any pending engagements,” with Huawei and its subsidiaries in compliance with the recent U.S. trade sanctions.
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Arm’s staff were also told they were not permitted to “engage in technical discussions, or otherwise discuss technical matters with Huawei, HiSilicon or any of the other named entities.” Arm believes it is affected by the restrictions the U.S. government has placed on Huawei as its designs contain “U.S. origin technology.”
Though Huawei develops many of its own chips in-house, the company relies on Arm’s license for certain architectures and designs. This license is critical to the development of smartphone CPUs in GPUs — the vast majority of smartphone makers use Arm’s designs. Losing Arm’s support would severely impact Huawei’s ability to produce smartphones and other mobile products.