US moves to cut Huawei off from global chip suppliers

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US moves to cut Huawei off from global chip suppliers
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Trump administration moves to block shipments of semiconductors to Huawei from global chipmakers, ramping up tensions with China

The US Commerce Department said it was amending an export rule to"strategically target Huawei's acquisition of semiconductors that are the direct product of certain US software and technology."

The reaction from China was swift with a report saying it was ready to put US companies on an "unreliable entity list," as part of countermeasures in response to the new limits on Huawei, China's Global Times reported on Friday. TSMC said on Friday it is "working with outside counsels to conduct legal analysis and ensure a comprehensive examination and interpretation of these rules. We expect to have the assessment concluded before the effective date," the company said, adding the "semiconductor industry supply chain is extremely complex, and is served by a broad collection of international suppliers.

The United States is trying to convince allies to exclude Huawei gear from next-generation 5G networks on grounds its equipment could be used by China for spying. Huawei has repeatedly denied the claim. Ross said in a written statement Huawei had "stepped-up efforts to undermine these national security-based restrictions."

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