HUAWEI receives another blow as ARM suspends their business deal

HUAWEI receives another blow as ARM suspends their business deal

Indeed, instead of making the SoC itself, ARM licenses its technology to chip-makers, which Huawei then buys to produce its Kirin processors. The company will not only be locked out of Google's software ecosystem but also lose the ability to develop its own ARM-based chips.

The UK's ARM has reportedly become the latest company to suspend dealings with Huawei after the USA government hit the Chinese equipment maker with trade sanctions last week. Even though President Trump granted a three-month reprieve of a ban that was supposed to come into effect immediately after last week's shocking announcement, a series of major Huawei partners have chosen to cut their business ties with the embattled Chinese tech giant already.

"ARM is complying with the latest restrictions set forth by the USA government and is having ongoing conversations with the appropriate United States government agencies to ensure we remain compliant", the Cambridge-based company said in a statement.

But Huawei has insisted it will continue offering services and support for its existing products in Japan without disruption despite the decision. Huawei uses ARM blueprints to design the processors that power its smartphones.

Huawei is possibly the biggest 5G player right now. It added that it's having "ongoing conversations with the appropriate USA government agencies to ensure we remain compliant". As the China-US trade war intensified in recent weeks, the US Commerce Department barred US firms from selling Huawei technology without government approval. The 5G enabled Kirin 985 was expected to launch later this year in Huawei's next flagship but looks like the SoC will now have to be built from scratch without ARM's aid.

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As it is left with few friends from among the global technology supply chain following the United States order, Huawei may be compelled to scale back its ambitions in the worldwide smartphone battlefield. Huawei also licenses graphics technology from the Cambridge-based company.

Based on the memo, ARM seems unsure whether it falls under the USA ban, so it's possible Huawei could be granted a reprieve. "We believe that this regrettable situation can be resolved, and our top priority remains to continue to provide world-class technology and products to our global customers", Huawei says in an official statement.

The operators no longer intend to launch the latest crop of Huawei devices.

The US government's restrictions made Google decide to discontinue partnership with Huawei.

ARM is also spreading into interconnected home devices, the "internet of things", and that next-generation potential was a key factor behind Softbank's decision in 2016 to pay a hefty £24 billion (RM127 billion) to take it over.