Chip manufacturing

Chinese technology company Huawei says the latest attempt by the US government to cut it off from international semiconductor supplies will end up doing the US more harm than good.

Last week the US Department of Commerce further tightened its restrictions on Huawei, introducing changes to the foreign direct product rule (FDPR) under the Export Administration Regulations (EAR).

The rule changes stipulate that any foreign chipmaker producing chips from designs by Huawei and its affiliates with the use of American design tools or equipment must apply for a license from the US Commerce Department.

Huawei called the planned restrictions “arbitrary and pernicious” in a recent press release.

In the release, Huawei said it categorically opposed the amendments made by the US Department of Commerce.

“The US government added Huawei to the Entity List on May 16, 2019 without justification. Since that time, and despite the fact that a number of key industrial and technological elements were made unavailable to us, we have remained committed to complying with all US government rules and regulations. At the same time, we have fulfilled our contractual obligations to customers and suppliers, and have survived and forged ahead against all odds,” it stated.

“Nevertheless, in its relentless pursuit to tighten its stranglehold on our company, the US government has decided to proceed and completely ignore the concerns of many companies and industry associations,” Huawei stated.

The tech giant said it expects the decision to adversely impact its operations of networks worth hundreds of billions of dollars that it has rolled out in more than 170 countries.

Huawei has been in partnership with TSTT locally partnering to build a $13 million innovation lab for the University of the West Indies and also helping TSTT roll out its 5G landline network.

“This decision by the US government does not just affect Huawei. It will have a serious impact on a wide number of global industries. In the long run, this will damage the trust and collaboration within the global semiconductor industry which many industries depend on, increasing conflict and loss within these industries,” it stated.

Huawei said the US is leveraging its own technological strengths to crush companies outside its own borders and this will only serve to undermine the trust international companies place in US technology and supply chains.

“Huawei is undertaking a comprehensive examination of this new rule. We expect that our business will inevitably be affected. We will try all we can to seek a solution. We hope that our customers and suppliers will continue to stand with us and minimise the impact of this discriminatory rule,” it stated.