In depth: Huawei's chip dreams in crosshairs of latest US assault

Options exist for tech giant, but window toward self-sufficiency is closing

20200603 Huawei chip AP_19178235041290.jpg

Most of Huawei's chips are used for its own products, but some think they could form a new business opportunity. © AP

MO YELIN, Caixin

The latest U.S. assault against Huawei Technologies is aimed squarely at the company's HiSilicon chip design unit, a move that could force the embattled company to sharply scale back or even abandon one of its most promising businesses, analysts said.

On May 15, the U.S. Department of Commerce announced it would expand a previous decision that had already cut off Huawei from its U.S. suppliers unless they got permission from Washington. It said that rule not only applied to Huawei's U.S. suppliers and other business partners, but also to any of Huawei's foreign chipmaking partners whose production lines incorporate U.S.-made equipment.

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