The specter of losing its access soon to Android and other Google-owned mobile products and services seems a looming reality for Huawei, which analysts fear could gradually cripple the Chinese tech giant. Then another blow came as British chip designer ARM announced on Tuesday that it is halting all business transactions with the world's second-biggest smartphone maker.
In a statement, ARM said it is suspending "all active contracts, support entitlements, and any pending engagements," with Huawei. The UK company said its decision was made in compliance with the recent trade ban issued by the U.S. government against the Chinese firm, effectively barring American businesses and companies with operations in U.S. soil (as in ARM's case) from dealing with Huawei.
"ARM is complying with all of the latest regulations set forth by the U.S. government," ARM was reported by Reuters as saying.
However, the company made clear in a subsequent statement that while it will remain compliant to the U.S.-instigated trade ban, it is not closing the door on the possibility of resuming its business cooperation with Huawei, which makes use of ARM-designed chips in fabricating its in-house HiSilicon mobile processors.
"Arm values its relationship with our longtime partner HiSilicon and we are hopeful for a swift resolution on this matter," the chip technology designer was quoted by The Verge as saying.
Despite the growing pressures that intend to push Huawei into submission, the company has elected to duke it out with the trade ban that U.S. President Donald Trump is implementing. In reaction to the threat of Google severing ties with the company and the latter denied the use of Android and other services crucial to its mobile business, Huawei has hinted the planned intro of its own mobile operating system.
But ARM withdrawing its license is thought to make life even more difficult to Huawei's mobile division. Such a scenario is unlikely to happen, according to GizGuide, citing reports that originated from China.
It was claimed that Huawei has prepared for its brewing standoff with the U.S. government by obtaining "a permanent license for ARMv8 architecture." And ARM8 is the 32/64-bit instruction set of ARM, the report published by the tech site added.
"It means that the Chinese tech giant can completely design ARM processors independently and master core technologies complete with intellectual property right," GizGuide further claimed.
In the event that the trade ban instigated by the Trump Administration holds for a longer time and ARM is prevented to do business with Huawei, the latter is fully capable of developing and manufacturing ARM-based chips for a stretch of time.
It appears that even if ARM will stay compliant with the U.S.-led shunning of Huawei businesses, such action will not impact on the China-based company. Still, Huawei remains optimistic that the trade dispute between China and America will be resolved soon and the restrictions on dealing with the company will likewise be lifted.