ARM cuts ties with Huawei in a devastating blow

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The ripple effect caused by the US-imposed trade clampdown is continuing to spread, this time affecting chip designer ARM.

The UK-based firm has reportedly sent a memo to employees to cease "all active contracts, support entitlements, and any pending engagements" with Huawei because of "US origin technology" in ARM's designs.

ARM has officially stated only that it is "complying with all of the latest regulations set forth by the US government". Huawei also issued a comment on the situation, seen below.

Update: Huawei has responded to the ARM ban. "We value our close relationships with our partners, but recognise the pressure some of them are under, as a result of politically motivated decisions." Full statement here: https://t.co/vhp55Dzi5V

— Tom Warren (@tomwarren)

href="https://twitter.com/tomwarren/status/1131171104314273793?ref_src=twsrc%5Etfw">May 22, 2019

ARM's technology is the foundation for most mobile chipsets and without it Huawei wouldn't be able to develop its own chips.

As such this is a huge blow to Huawei and described by one analyst as "insurmountable".

The US put Huawei on its Entity List, meaning all US companies (like Google) are disallowed from trading with it Huawei. The US later postponed the ban for 90 days allowing Huawei some access to American-made goods to some degree.

Here's a who stands to gain and who will lose the most because of the situation.

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