ARM Deals Huawei Huge Blow

ARM Deals Huawei Huge Blow
The U.S. government restrictions mean that ARM will no longer license its vital chip technology to Huawei.

(CCM) — Huawei's smartphone problems have become even more extreme following the announcement by UK-based chip designer ARM that it is to cease doing business with the Chinese company, the BBC is reporting.

ARM designs are used in almost all mobile device processors, including Huawei's, and an analyst quoted in the report said that ARM's move would greatly affect Huawei's ability to develop its own chips, because they are built on top of ARM's technology.

The affect on Huawei's business could be an "insurmountable" blow if ARM's action continues in the long term, the analyst concluded.

ARM explained its actions in a statement, saying that it was "complying with the latest restrictions set forth by the US government and is having ongoing conversations with the appropriate U.S. government agencies to ensure we remain compliant."

Huawei relies on ARM technology to such an extent that earlier this month Huawei announced plans to build a research center close to ARM's headquarters in Cambridge, U.K. This has now been plunged into uncertainty.

Earlier this week Google announced that new Huawei smartphones would no longer be able to access Google services such as the Play Store or YouTube in order to comply with the U.S. government's restrictions.

Image: © Huawei.