ARM to stop supplying chip technology to Huawei

SoftBank Group Corp.-owned chip designer ARM will comply with the Trump administration’s order to stop supplying Huawei Technologies Co. with technology vital to the manufacture of the Chinese company’s products.

Some of ARM’s intellectual property — predominantly designs for low-power semiconductors used in mobile products — is created in the U.S., making it subject to the same restrictions as American chipmakers.

“ARM is complying with all the laws and regulations set forth by the U.S. government,” a spokesman for the company said Wednesday.

The BBC earlier reported that an internal memo to ARM employees said business with Huawei would be suspended.

The Trump administration on Friday blacklisted Huawei — which it accuses of aiding Beijing in espionage — and threatened to cut it off from the U.S. software and semiconductors it needs to make its products.

Certain European semiconductor makers said this week they would keep supplying to Huawei, but U.S. chipmakers including Intel Corp., Qualcomm Inc., Xilinx Inc. and Broadcom Inc. have told their employees they will not supply Huawei till further notice, according to people familiar with their actions.

In a statement, a spokesman for the Chinese company said the firm “recognizes the pressure” some of its partners are under. “We are confident this regrettable situation can be resolved,” they added.

SoftBank agreed to buy ARM in 2016 for 24.3 billion pounds ($32 billion), to secure a slice of virtually every mobile computing gadget on the planet and future connected devices in the home.

Now read: Asian mobile networks start dropping Huawei smartphones

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ARM to stop supplying chip technology to Huawei