Arm suspends business with Huawei

The UK-based chip designer ARM has reportedly informed staff via an internal memo to ‘suspend business’ with Huawei to comply with US trade restrictions. The reports come via the bbc.

Who is Arm

Founded in 1990 ARM is a chip designer, and was acquired by Japanese telecoms giant Softbank in September 2016. Arm remains in the UK and is based in Cambridge.

Why the decision to suspend business

Following the US Commerce Department’s decision to add Huawei to its “entity list” of companies with which American firms could no longer do business.

Arm Holdings, Cambridge, UK

The memo to staff on May 16th advised staff to send a note informing Huawei employees that due to an “unfortunate situation”, they were not allowed to “provide support, delivery technology (whether software, code, or other updates), engage in technical discussions, or otherwise discuss technical matters with Huawei, HiSilicon or any of the other named entities”.

Arm joins Google in issuing a ban, however, US government officials issued a 90-day reprieve on the restrictions in order to minimise immediate disruption. Google will work with Huawei during this 90 day period but a source at ARM said staff had not been told they could start working again with Huawei or its subsidiaries, even temporarily.

The saga of Huawei seems to develop every day and we will try to keep a close eye on events as they unfold as the consequences could affect individuals as well as companies, we urge you to read our opinion piece on US Vs Huawei.