Electronics, News

Tech industry to face major consequence after limitations on Huawei hardware sales

Written by Naima Rabbie ·  1 min read >

The government of the USA is adding up limits on chips and other hardware gear from Huawei Technologies and Co. Causing major tech markets to negotiate with the government. Different software, chip-making companies, and software manufacturers have written an open letter to Wilbur Ross the Secretory of Commerce in which they have argued regarding the changes. According to the letters, the companies wanted to communicate with the president Donald Trump before the strict rules are imposed.

Few companies continued selling the chips even after the blacklisting of Huawei. The US government banned Huawei products in May quoting that it is breaching the National Security of the country. Huawei Technology and Co were put on an entity list and all the American companies who wished to work with the Tech giant were forced to take a license first. Huawei was initially accused of working with the government of China and providing them with access to illicit details and information about the US companies on the panel.

The Semi Conductor Association‘s president John Neuffer quoted “ We respectfully request the administration from pursuing these regulatory changes and consider carefully the potentially significant harm they are going to cause.”
Neuffer condemns the government officials’ approach of implying the ban as rules, not as a proposal that will get a major upheaval in different stakeholders and industries while condemning the government officials’ approach.
According to tech companies, this rule of banning Huawei is going to harm the US economy. US companies might face massive losses in sales to overseas competitors.

The Beijing Government is threatening to retaliate the companies that have stopped working with the tech giant Huawei which is a champion nationwide and produced and exported smartphones and telecom hardware worldwide.
The Commerce Department told in an interview that some of the license applications of companies to work with Huawei were approved while others were rejected. As per their report, Microsoft Tech won the license approval, however, they did not mention any other big scale software company that got the license.