U.S. Chip Manufacturers Block Component Supply to Huawei

The world’s biggest chipmakers, including Qualcomm Inc., Intel Corp., and Broadcom Inc., have informed their workforce that it should stop supplying Huawei Technologies Co. Ltd. before the Trump administration’s next announcement, said people familiar with the matter.

The supply of hardware and software solutions from Google has currently stopped at Huawei, they added.

On Friday, U.S. authorities added the Chinese tech giant to the blacklist and menaced it from the supply chain of U.S. software and semiconductors, which it requires the most. The ban is likely to restrict the world’s biggest networking gear provider and smartphone maker.

The ban is impacting not only Huawei but also its influence spread outside of the U.S. and Asia. Infineon Technologies AG, a German semiconductor manufacturer, also reported a fall in its early trading after it cut-off its supply to Huawei, the rouse of the U.S. ban, the media reported. French-Italian semiconductor company STMicroelectronics also reported a drop in its share price.

According to a statement, Huawei said that it will continue to provide sales services and updates to customers.

Obstructing vital components supplied to Huawei could potentially cause disturbing operations by U.S. chip giants including Micron Technology Inc. The move would also delay the launch of 5G wireless networks across the world. It could also be harmful to those companies which are growingly dependent on Chinese economic structure in terms of development.

Intel is the leading supplier of server chips whose work deals with Chinese companies, whereas Qualcomm provides them with processors and modems for Huawei’s smartphones and Chinese firms, and purchases programmable chips from Xilinx. Broadcom sells switching chips used as a critical component in networking machinery.

Toyota Severely Criticized President Trump’s Conclusion Over Foreign Car Imports

Toyota Motor Corp. severely criticized the U.S. administration’s proclamation, according to how imported cars are dangerous to U.S. national security, which indicated potentially controversial discussions for leading business partners at the White House.

The Japanese carmaker rebuked over President Trump’s statement saying if the U.S. is seeking to defend itself against imported cars and components, that signals that the U.S. is no longer interested in investments done by Toyota. The company said it had invested nearly $60 billion in the U.S. and established 10 manufacturing facilities.

According to conclusions rendered by the Commerce Department with the consent of the president, which thoroughly probed imported vehicles and components, they discovered that they threatened national security by staying ahead of the curve of American car manufacturers from the last couple of decades. Consequently, the White House assigned a 180-days deadline for deal negotiations set for car exporters of Japan, the European Union, and others.

Even though Toyota believes that the talks could be settled down easily; it said that obstructing imports would be harmful for US customers, they would need to pay more. The company criticized the move two months after it vowed to invest $3 billion more into an investment plan.

Other automakers were also deeply involved in the issue, but they expressed concerns about the threat from U.S. military forces. The deadline set by more than a dozen automakers from the U.S. and foreign companies will put more than 700,000 of American jobs at risk.