This week is clearly not shaping up to be a good one for Huawei. The Trump administration’s executive order has clearly affected its business with companies like Intel, Qualcomm, and Google. To make matters worst, ARM is the latest company to suspend its partnership and deals with the Chinese brand.
News of ARM’s decision to sever any and all current relationships was made known via a memo that circulated within the chipmaker’s office. Instructing them to halt “all active contracts, support entitlements, and any pending engagements” with Huawei and sister companies such as HONOR. The latter having just launched its new HONOR 20 and HONOR 20 Pro smartphones.
ARM’s withdrawal from its partnership with Huawei could have devastating consequences for the Chinese brand. As it stands, nearly all chipsets in use around the world contains ARM’s technology, in one form or another. Huawei’s high-end Kirin 980 SoC is no exception, as is their range of enterprise-grade servers.
Just a day ago, German chipmaker Infineon also halted all deliveries from its US branch to Huawei. In accordance with the US ban.
For the most part, Huawei has been keeping positive, with its CEO having said that the ban will not affect it as badly as many think. Be that as it may, it’s clear that the odds are still stacked high against the Chinese company, and only time will tell if it will be able to weather the storm.