ARM axes Huawei too; massive blow to the company

Huawei is developing its own mobile operating system called HongMeng OS

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Huawei's own Kirin processors that are used in its smartphones rely on ARM's chip architecture designs.

The UK's ARM has reportedly become the latest company to suspend dealings with Huawei after the United States government hit the Chinese equipment maker with trade sanctions last week.

It's yet another significant blow for Huawei, which has already been barred from doing business with Google LLC and various chipmakers including Intel Corp. and Qualcomm Technologies Inc.

"ARM is complying with the latest restrictions set forth by the USA government and is having ongoing conversations with the appropriate USA government agencies to ensure we remain compliant", an ARM spokesman said in a statement.

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Huawei said late Wednesday that it is working with ARM about their partnership and that it hopes the situation can be resolved.

Shortly after Huawei was placed on a trade blacklist, forcing Google to stop collaborating with the company, a new report from BBC claims that UK-based IP vendor ARM has also "suspended business" with the company and all of its subsidiaries.

It's general and broad in language but is widely believed to be very specific in intent: To prevent the deployment of Huawei networking infrastructure in the USA, including and especially the current 5G rollout. "We don't want to do this but we will forced to do that because of the USA government", he told CNBC. ARM is the basis for most phone processors worldwide, leaving Huawei in a hard situation. Huawei is becoming the victim of bullying by the USA administration.

Arm China must too follow the enforcement of the ban, even though as per Chinese law it is 51 per cent Chinese investor owned (with a 49 per cent stake held by Arm Holdings).

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According to a Financial Times report, mobile network operator Vodafone has also chose to exclude Huawei's Mate X phone from its 5G line-up, which is due to be launched in the summer.

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.

The government will rule imminently whether Huawei will be allowed to participate in these new networks.

Huawei seems to be in real trouble as of now and we can only hope they find a way out soon as some recent devices from the brand were indeed great examples of innovation.

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Despite the temporary reprieve, Huawei told CNBC on Thursday that its own operating system could be ready in China by fall 2019 if it can't use Google and Microsoft. After all, Trump's ban is only set to impact Huawei's relations with American companies or, in Arm's case, companies whose products contain "US original technology".

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