US to further restrict Huawei's access to technology, chips

The US will tighten restrictions to prevent Huawei Technologies Co from obtaining semiconductors without a special license, including those made by foreign firms that have been developed or produced with US software or technology.

There would also be another 38 Huawei affiliates in 21 countries added to the US economic blacklist, raising the total to 152 affiliates since May 2019.

US Commerce Secretary Wilbur Ross said that restrictions on Huawei-designed chips imposed in May prompted "evasive measures" as Chinese firms were "going through third parties."

He emphasized that the use of American software or American fabrication equipment is banned and requires a license.

Secretary of State Mike Pompeo pointed out that they would prevent Huawei from circumventing US law via alternative chip production and off-the-shelf chips."

Ross said they are covering "off-the-shelf designs" that Huawei may purchase from a third-party design house.

Huawei's HiSilicon division relied on US companies such as Cadence Design Systems Inc and Synopsys Inc to design its chips and outsourced the production to Taiwan Semiconductor Manufacturing Co, which uses equipment from US companies.

TSMC has said it will not ship wafers to Huawei after Sept. 15.

A separate rule requires blacklisted companies to obtain a license when a company like Huawei is an intermediate purchaser, end-user, consignee, and ultimate consignee.

The department will not extend a temporary general license that expired Friday for Huawei users, who must now submit license applications for previously-authorized transactions.

However, a limited permanent authorization will be given to Huawei entities to allow security research for maintaining the integrity and reliability of networks and equipment.

The US is persuading governments worldwide to squeeze Huawei out for handing over data to the Chinese government for spying.