X

US sanctions on Huawei might intensify to impact chip access

Featured image for US sanctions on Huawei might intensify to impact chip access

A few years ago, the US launched a series of sanctions on Huawei to block their access to chips for their manufacturing needs. These sanctions came at a time when the Chinese tech giant was developing its chips. New reports now point out that the US is planning to impose a new round of sanctions on the tech company after hitting its biggest launch milestones in a few years.

The launch of the Mate 60 series proved that despite these sanctions, Huawei has still been able to grow and develop its chips. Devices in this series make use of Huawei’s in-house processor, meaning that the tech company has somehow overcome previous sanctions. Following this launch, teardowns of the device revealed its interior parts as well as the chip showing its components.

Advertisement
Advertisement

Some components in this new chip are from chip companies that the US sanctions prevent Huawei from working with. Regardless of this limitation, Huawei was somehow able to get these components for usage on their new Mate series devices. For this reason, the US government is planning fresh sanctions and curbs that aim to hinder any further Huawei growth.

The new US sanctions on Huawei will affect AI chips and tighten chip exports to China

The US government is now planning to impose new sanctions on Huawei after the company’s latest launch. After the launch, it became clear that the Chinese tech giant was able to access certain chip components. Some of such components like the RAM are from companies like SK Hynix.

Recent reports point out that the US government is now working on not only imposing new sanctions. They are planning to add more chip export blockades to the already existing sanctions that affect the likes of Huawei and ZTE. By doing this, they would further limit Chinese companies from accessing chips necessary for their manufacturing process.

An area where these new sanctions aim to hit is the AI chip industry, which is currently making waves. With the rise in AI technology and diversification in its use cases, the AI chip industry is robust. Chinese companies like Huawei will need access to these chips to develop their own AI technologies.

By placing sanctions on the export of AI chips to China, the US government might have plans to limit AI growth in these regions. Just like with the Huawei sanctions, the US government claims these new sanctions are to protect national security. However, there might be some plans to allow the export of consumer electronic devices to China.

For these exports to take place, the US will demand a notification from the exporting company. This will help them to ascertain whether the export will pose a threat to national security. Netizens will wonder how these new sanctions will affect Huawei and if they will still deter its growth.