ZTE, the China-based hardware and smartphone maker, has been banned from procuring electronic components from American suppliers by the US Department of Commerce. The Chinese company is being punished by US lawmakers after it pleaded guilty to providing telecommunications equipment to Iran and North Korea – two countries that are currently on the US sanctions list.
To make matters worse, the US department found that ZTE also lied about its actions and provided “false statements to the (country’s) government” after they had been caught on put on its Entity List.
The ban – which is in full effect – means American electronics companies such as Qualcomm will not be able supply the company with its processors and hardware for a period of up to seven years. Likewise, the ban also means that that the maker of the popular Snapdragon processor is out a revenue stream for the next seven years.
Of course, with its avenue to some of the most sought after components closed off (for the time being), it’s a given that ZTE will now have to source out its processors from non-US companies.
(Source: US Department of Commerce via Hot Hardware)
