New US Bill may stop Huawei from getting important tech for chips

A new US defense bill may block Huawei from obtaining the required technology for chip production. The bill will ban those companies working with the US Department of Defense from selling important tools and parts to Huawei. The US government is implementing this measure against Huawei due to security concerns.

Recently, a report revealed that Huawei spends about $22 billion each year on research and development to stay ahead in the innovation competition. An expert said that if the company doesn’t continue this, it will fall behind in a few years.

A new NDAA will make it harder for Huawei to access chip-making equipment

According to a report (via GSMArena), a new National Defense Authorization Act (NDAA), unveiled on Saturday, will make it harder for Huawei to get the equipment it needs to make semiconductors, which are small but very important parts of many electronics. The US government views Huawei as a security risk because of its roots in China, and this law will make it difficult for the company to buy the technology it needs.

The bill would make chip tech suppliers choose: Work with Huawei or lose Pentagon contracts. The Pentagon has a huge budget, spending billions of dollars each year, so losing the chance to work with the US defense would be a big deal for many companies.

If passed, this bill would hurt Huawei’s ability to get the tech it needs for its business which is already struggling due to previous US bans.

New US law will tighten restrictions on Huawei

The new law aligns with the US government’s ongoing measures to reduce reliance on Chinese technology and address security concerns. Huawei has been banned for several years and this new law would make it even harder for the company to get the parts it needs.

Earlier this year, the US also prohibited companies like Qualcomm and Intel from selling chips to Huawei. This new bill would build on those actions and stop more companies from working with Huawei in the future.

The law would come into effect 270 days after the signature of the President. That is less than a year for companies to decide whether they will continue working with Huawei or lose their US defense contracts. The new law would probably make it harder for Huawei to compete in the tech market, especially in smartphones and 5G.