Panasonic 'suspends transactions' with Huawei after USA ban

Ever since Google announced that it will stop its services for Huawei, Qualcomm and Intel will also cut ties with them.

"Panasonic announced in [an] internal notification that it should suspend transactions with Huawei and its 68 affiliates that were banned by the usa government", the firm said in a statement.

Some analysts said the USA moves against Huawei will lead to strong support for the unlisted Chinese firm as Huawei is working hard to offset the fallout of the restrictions.

Initially, the decision by Google was to immediately pull support for Android on Huawei devices but a last-minute negotiation with the U.S Commerce Department gives them a 90-day extension where they will be allowed to issue software updates, including security updates, to existing phones and goods that were purchased in the US.

The group also said it would phase out the use of Huawei equipment in the most sensitive "core" elements of its network infrastructure.

SoftBank's low-priced mobile brand, Ymobile, and other Japanese telcos have said they will delay the launch of Huawei smartphones due to go on sale on Friday.

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On Thursday, TSMC said that the new USA restrictions against foreign companies that present a high risk to US national security, will not impact its shipments to the Chinese firm Huawei.

Its move came a day after British chip designer ARM said it had halted relations with Huawei to comply with the United States supply blockade, potentially crippling the Chinese firm's ability to make new chips for smartphones.

If you're feeling bewildered trying to keep up with the never-ending references to Huawei in the news, you're not alone. The US market doesn't factor much into Huawei's sales, but subsequent bans and tighter regulations in other western and European nations could cause a bigger dent.

The moves have prompted a parade of firms to step back from dealings with Huawei, including Google, whose Android operating system powers most of the world's smartphones.

"Recently, some US politicians have continually fabricated rumors about Huawei but have never produced the clear evidence that countries have requested", Chinese Foreign Ministry spokesman Lu Kang said, when asked about Pompeo's remarks. It has emerged that Arm staff have been sent a memo telling them they must suspend all business with Huawei.

Huawei has been thrust at the centre of escalating tensions between the world's two top economies, with President Donald Trump saying Thursday the fate of the company could be included in any deal to resolve their trade war. It also called on the government to help clarify national security concerns surrounding Chinese manufactured smartphones.

  • Darren Santiago