Proposed U.S. rule change forces Huawei to make a shift in chip production

Currently, a component made outside of the U.S. that contains 25% of American technology or more is under the export control of American regulators. This means that a chip made using 25% or more of U.S.-origin technology cannot be sold to Huawei because of the U.S. supply chain ban. And the U.S. is reportedly looking to tighten the screws as the Commerce Department weighs dropping that threshold to 10%. If such a change is made, it would be the first in 30 years and would hit Huawei very hard.

Expecting that such a change will be made, that Huawei has directed its ...

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