Huawei responds to severe new US sanctions

According to reports from the Nikkei Index, Taiwan Semiconductor Manufacturing Co. (TSMC) has stopped accepting new requests for Huawei chipsets.

This means that Huawei has lost its largest chip supplier, and TSMC will lose one of its biggest customers.

This comes after the US decision to impose new sanctions on Huawei.

As the sanctions imposed on the company in May last year prevented American companies from dealing with Huawei citing it was a “threat to national security”, the new sanctions are more severe in that they prevent any company that uses American machines or technologies from dealing with Huawei.

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In the past, Huawei continued to operate as before and continued to grow thanks to relying on global partners instead of Americans, but with the new sanctions the company has lost the ability to obtain electronic chips and many other components from TSMC or other companies that use American technology.

Within a media statement sent by Huawei to our site, the company said: “Huawei was blacklisted by the US government on May 16, 2019 without any justification. Since that time, and despite the fact that a group of the necessary industrial and technological materials and elements are no longer available for acquisition by Huawei, we have committed to applying all laws established by the United States in this regard and we have been able to fulfill our contractual obligations to our customers and suppliers and have continued to exercise and advance our business despite the difficulties that we encountered.

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“Huawei is currently working on a thorough audit of the new rules and procedures that will undoubtedly affect our business. We will do our best to find solutions to follow up on our obligations towards our customers, and we hope that our customers and suppliers will continue to coordinate with us to reduce the effects of these new arbitrary rules on companies dealing with Huawei and its exports to them.”

Huawei has strongly condemned the new American decision, describing it as arbitrary and unjustified, as the Chinese company stressed that the impact is not confined to Huawei alone, but will significantly impact the technology sector as a whole and telecommunications industry globally, in addition to billions of users as well.

Currently it is unknown what the effect of this serious decisions will have on Huawei and what its implications will be for the strained US-China relationship, but Huawei is working to find solutions that allow the work to continue while avoiding the new restrictions imposed.

This story originally appeared on MENA Tech