U.S. companies temporarily halt chip supplies for Huawei products

Huawei has recently been focusing more on developing and producing its own chips to reduce its dependence on US suppliers
Google has recently stopped Huawei from accessing its proprietary Google Play components and now US-based chipmakers such as Intel and Qualcomm are also temporarily cutting off supplies for China's biggest tech giant and world's second largest phone manufacturer.
Apparently, Google said that it was complying with an executive order issued by US President Trump who has added Huawei to a list of blacklisted companies banned from doing trade with US firms. This has already resulted in Google stopping to license its important elements of Android experience, with silicon chip makers now seemingly halting sales of their products to the Chinese mobile and network equipment manufacturer.
Sources familiar with the matter informed that Qualcomm supplies modems and processors for Huawei's mid-range phones while Intel offers processors for its server products. Broadcom and Xilinx offer components that Huawei uses for its business and networking equipment.
Supposedly, Huawei has recently been increasing the production and development of its own chips to reduce its dependence on such US companies. However, if the ban continues then its business will still be crippled severely.
According to the sources, the United States views Huawei as a security threat because it believes that the company has close links with the Chinese government, which Huawei has further opposed. U.S. officials have stated that through its network technology, Huawei could possibly tap into and monitor sensitive U.S. communications.
The Commerce Department of U.S. recently mentioned that it would allow some transactions to continue till 90 days, to enable specific activities which are essential to the continued operations of present networks and also to provide support to current mobile services.
The temporary reprieve will enable Huawei to accept U.S. equipment to service current rural broadband networks and Huawei mobile phone users, sources added.
Source Credit: https://www.slashgear.com/huaweis-woes-continues-as-qualcomm-intel-broadcom-cut-off-supplies-19577177/