Leading chipmakers to sever ties with China’s blacklisted Huawei Technologies Co.

Telecom giant faces potential supply shortages, begins stockpiling chips

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(By Associated Press)

TAIPEI (Taiwan News) – After U.S. president Donald Trump added Huawei to the “entity list” of firms that need licenses to acquire American supplies, many chipmakers are allegedly joining Google to follow through on the ban.

According to Bloomberg, microchip suppliers Qualcomm, Intel, and Broadcom are distancing themselves from the Chinese telecom giant by cutting off their hardware and software supplies to Huawei.

The Trump administration accused Huawei of spying for the Chinese government. Google released a statement after the ban saying that it is “complying with the order and reviewing the implications.”

The move from Google will restrict Huawei smartphone users’ access to Android updates and certain Google apps, including YouTube and Maps, reported BBC.

Bloomberg reported that Huawei, to deal with the sudden cut, have been stockpiling chips to minimize losses in production capability. However, the company is anticipated to struggle in the long run.