Major Chip Companies Follow the Lead of Google to Stop Supplying Huawei After US Blacklist

Things for Huawei seem to be going from bad to worse as American suppliers are all supposedly abiding by the U.S. Department of Commerce's placement of the company and its affiliates on the Entity List. 

RELATED: GOOGLE PULLS HUAWEI'S LICENSE FOR ANDROID, APPS AFTER US BLACKLISTING

Joining Google

Bloomberg reported that Intel, Qualcomm, and Broadcom, are ending business with Huawei and stopping shipments immediately. Nikkei Asian Review further reported that German chipmaker Infineon Technologies, as well as US memory chip makers Micron Technology and Western Digital, have all joined Google in banning the firm.

Micron confirmed to the Nikkei on Monday in a statement that "As a U.S. based company with a global footprint, Micron respects and complies with all laws and regulations in the U.S. and other countries where we operate."

The news comes right after Google dropped its business with Huawei. According to Bloomberg, Huawei released a company statement saying it will continue to provide security updates and sales services to customers.

The U.S. Department of Commerce has placed Huawei and its 70 affiliates to the Entity List, an essential U.S. trade blacklist, in a move that aims to prevent western allies from using Huawei equipment. The move seems to be working.

And it is not just America that is affected. Nikkei's sources seem to suggest that Europe might be following in the U.S.'s steps. “Infineon decided to adopt a more cautious measure and stopped the shipment. But it will hold meetings this week to discuss [the situation] and make assessments,” said one source to Nikkei.

Negative consequences

However, Bloomberg has warned that the move could have some negative consequences for the U.S. and the world in general particularly in the deployment of 5G.

"Blocking the sale to Huawei of critical components could also disrupt the businesses of American chip giants like Micron Technology Inc. and retard the rollout of critical 5G wireless networks worldwide -- including in China. That, in turn, could hurt U.S. companies that are increasingly reliant on the world’s second-largest economy for growth," said Bloomberg.