Security News > 2020 > May > U.S. Restriction on Chipmakers Deals Critical Blow to Huawei
The latest U.S. sanctions on tech giant Huawei threaten to devastate the company and escalate a feud with China that could disrupt technology industries worldwide.
Huawei Technologies Ltd. is one of the biggest makers of smartphones and network equipment, but that $123 billion-a-year business is in jeopardy after Washington announced further restrictions on use of American technology by foreign companies that make its processor chips.
In a statement, Huawei criticized the U.S. decision as "Arbitrary and pernicious" and warned it will affect operation and maintenance of networks installed by the company in more than 170 countries.
The company's telecoms market in the U.S. evaporated after a congressional panel in 2012 labeled Huawei and its Chinese competitor ZTE Corp. security risks and told phone carriers to avoid them.
Last year's sanctions require U.S. companies to obtain government permission to sell chips and other technology to Huawei.