Huawei’s US ban will be ‘incredibly damaging’ for ARM says the company co-founder Hermann Hauser. This comment comes at a time when the British ARM is banned from supplying chip designs to the Chinese telecommunications giant.
Back in May, Huawei was added to US’s entity list which meant it was practically banned from trading with US companies. This also meant that the Chinese giant couldn’t use any technology with components sourced from the US. Since ARM’s chip designs contain origin US technology, it could no longer keep supplying its chip designs which are essential for Huawei’s smartphone and server businesses.
Since US technology is a part of a majority of international companies as well, Huawei’s relationship with even non-US companies is also at risk. However, it’s not just the Chinese companies who are threatened by this trade ban. A number of non-US companies are also increasingly worried about this trade ban.
The US has not been able to give out credible evidence against Huawei, apart from allegations that it is being used by the Chinese government for spying. Since this trade ban came into effect without any strong evidence, international companies are worried about the same happening to them. This is why Hermann says that customers would want to limit technology originated from the US in order to avoid a situation similar to Huawei. This includes products from ARM.
‘It really is quite damaging for Huawei in the short term, and longterm it’s going to be incredibly damaging for Arm and Google and the American industry,’ said Hermann while talking to the Mail.
‘Every single supplier in the world will start thinking of how to reduce the threat of their production being terminated by an American president. All the discussions I have with companies in Europe at the moment are about them going through their intellectual property portfolio and designing American intellectual property out, which is terribly sad and destructive.’
It’s clear that this ban doesn’t just affect Chinese companies. Its long term effects will be felt by companies across the globe.
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(Via)
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