Huawei is getting hammered on a daily basis as it seems, just two days back the license extension to use Google’s Android service expired and will not be renewed, now the US Commerce Department is issuing fresh sanction that could possibly bring an end to the company’s existence.
The latest sanction according to news reports will apparently forbid any foreign semiconductor manufacturer from selling chips developed or produced using US software or technology to Huawei. As per earlier, the restriction was just on chips manufactured in US or those from Taiwan Semiconductor Manufacturing, this time around a broader approach is being taken by Trump and his administration. This latest move could potentially impact all the business segments for Huawei which is very depended on various chips to manufacture be it flagship smartphones, notebooks, tablets and even 5G equipment’s.
US is making the most serious of moves with this sanction, the gravity of this action would end Huawei with its phone business going under sooner than expected. Its hopes of working with other third party chip makers now increasingly looks impossible. Nearly all semiconductor produced has elements of US technology in them, getting approval to use them is not going to be easy and with Trump on a warpath, US Consumer Department will most likely find excuses to reject any application.
Chinese apps have also not been spared in the tantrums, the President has banned apps like TikTok and WeChat in US and will be taking steps to add more companies to the list with rumours Alibaba and Tencent could be joining the ban. Whats left in this strike is for China to strike back, but how much damage can it inflict compared to whats happening now is already a calculated guess.