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Exclusive: U.S. nears rule-change to restrict Huawei’s global chip supply – sources – Source Reuters Tech News

FILE PHOTO: A Huawei company logo is pictured at the Shenzhen International Airport in Shenzhen, Guangdong province, China July 22, 2019. REUTERS/Aly Song/File Photo

(Reuters) – Senior cabinet officials in the Trump administration agreed to new measures to restrict the global supply of chips to China’s Huawei Technologies, sources familiar with the matter said, as the White House ramps up criticism of China over coronavirus.

Under the change, foreign companies that use U.S. chipmaking equipment would be required to obtain a U.S. license before supplying certain chips to Huawei. The Chinese telecoms company was blacklisted last year, limiting the company’s suppliers.

One of the sources said the rule-change is aimed at restricting the sale of sophisticated chips to Huawei and not older, more commoditized and widely-available semiconductors.

Because most chipmaking equipment used worldwide relies on American technology, the change would represent an expansion of export…

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Source Reuters Tech News

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