ARM suspends business with Huawei

ARM, a UK-based chip designer, sent a memo to its employees stating all business with Huawei is suspended.

ARM suspends business with Huawei

ARM to cut ties with Huawei?

According to BBC's source, ARM instructed employees to stop all active contracts, support entitlements and any pending engagements with Huawei. It's in compliance with the recent US trade ban against the Chinese company.

Related: ARM suspension will have little effect, according to a report

The UK-based ARM's designs contain "US-origin technology," meaning it could be subject to the US government's trade ban. This could be a huge blow to Huawei if this becomes permanent.

It could also affect Huawei's ability to develop their own chips as these are currently built with ARM's technology at its core.

ARM, in a statement, said that they are just complying with the latest regulations set by the US government.

ARM's move comes to a surprise given the US government temporarily lifted the ban on Huawei for 90 days.

See also: Reasons why Huawei users should not be worried over US blacklisting

Huawei has not issued a statement about this new development as of the moment.

Source: BBC