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Huawei crackdown

Huawei's chipmaking ambitions at risk after Arm cuts ties

Move by key UK chip designer chokes off crucial intellectual property rights

Arm's chip designs form a crucial part of the global mobile device supply chain. (Photo courtesy of Arm)

TAIPEI -- The decision by U.K.-based chip designer Arm Holdings, which provides intellectual property used in 90% of the world's mobile processors, to suspend business with Huawei Technologies raises a cloud of uncertainty over the Chinese company's long-term aim of becoming a bigger force in semiconductors.

Arm, which is owned by Japan's SoftBank Group, holds chip designs crucial to Huawei's semiconductor program. Arm told the Nikkei Asian Review that it "is complying with all the laws and regulations set forth by the U.S. government."

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