US Plan New Proposal To Completely Kill Huawei's Smartphone Business

Pappi Hex

The war between Huawei and the US shows no sing of stopping soon. Last year, the US government restricted Huawei from using Google services on new Huawei devices via the trade ban which also restricted it in several ways.

However, the Chinese company still managed to beat Apple to retain the number two spot in the world in terms of shipments.

Despite Huawei's hardship and struggle to stay afloat amid the US sanctions, it doesn't look like the US government is backing down on the Chinese firm or done doing inflicting sanctions.

Also Read: Angry Huawei Says It Won't Return To Google Services Even If US Lifts Trade Ban

According to Reuters, the US government is working on a regulation change that would restrict Huawei's access to smartphone chipsets. This new proposal is aimed at Huawei to cripple the company's business relationship with chipmakers like Taiwan's TSMC, which is one of Huawei's main chip supplier.

If this proposal goes through, the US could force firms using their chip-making equipment to get a license from them before supplies can be made to Huawei. That is, the US will be able to dictate licensing terms for the technology or even block the issuing of licenses.

"What they're trying to do is make sure that no chips go to Huawei that they can possibly control," a  source told Reuters.

The new restriction is among new several options that the US government is exploring against Huawei. All of which will be discussed at high-level meetings this week or the next.

Another source told Reuters that though the chipset proposal has already been drafted, there isn't any certainty that it will be approved just yet.

Since most chipset foundries use US-made equipment, Huawei will be dealt a huge blow if it loses access to chipsets or even a disruption in its supply chain.

When reached for comment by Reuters, the US Commerce Department declined to comment. There was also no official response for TSMC or Huawei.

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