The United States is apparently considering other extreme options to further hamper Huawei operations. Previously, the Trump administration had primarily planned to focus on the Chinese tech giant locally but has since been pressuring other overseas governments as well to ban the smartphone manufacturer.
With ties between the US and China trade being strained, Huawei had been caught in the crossfire in early 2019, when multiple allegations accused the tech brand regarding data security and espionage. Currently, the company is still facing issues in its US operations and in a few European regions as well but has been steadfast in its vision of growth and development.
But now, the US Government is reportedly planning on changing certain regulations that will allow the nation to block shipments of chips to Huawei. The chips in question are from the largest global supplier named TSMC (Taiwan Semiconductor Manufacturing Company). The new restrictions that are being planned are among many others that have been made in the recent meeting between high ranking government officials.
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The primary aim of these meetings is directed at commerce with Chinese OEMs, especially Huawei Technologies. As of right now, the new proposals have been drafted but are yet to be approved. Furthermore, the possibility of these drafts being approved is also questionably, according to close sources. However, being blocked from TSMC which is the largest contract chip supplier will deal a devastating blow to the 2nd most popular smartphone brand.
In simpler terms, the US Government is drafting restrictions that seek to cripple Huawei’s operations in the country by taking a very crucial component of its devices. To make such changes, changes in the Foreign Direct Product rule are being proposed, which will affect some overseas made goods on US technologies. This means, that the local government would make it mandatory for companies like TSMC to apply for a license, allowing the US to control the supply of products to other company’s.
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(Via)
