ARM latest to snub embattled Huawei

UK-based chip firm ARM has reportedly told staff to end all business with Huawei, which the Chinese vendor has described as 'regrettable'

Huawei's international business has taken another hit today, after UKchip maker ARM cut all ties with the Chinese giant.

In a memo to staff seen by the BBC, ARM told employees to end "all active contracts, support entitlements, and any pending engagements" with Huawei, and its subsidiaries, to comply with US trade sanctions.

ARM say that while the firm is UK-based, its designs contain "US origin technology", which are subject to the US trade tariffs sanctioning Chinese businesses.

A Huawei spokesperson slammed the decision as politically motivated.

"We value our close relationships with our partners, but recognise the pressure some of them are under, as a result of politically motivated decisions," they said.

"We are confident this regrettable situation can be resolved and our priority remains to continue to deliver world-class technology and products to our customers around the world."

Huawei is the most high-profile vendor to be caught between the tit-for-tat economic dispute between the US and China.

In addition to trade tariffs against China, the US has also accused Huawei of being behind state-sponsored espionage.

US Secretary of State Mike Pompeo has called the company a "serious security threat".

Yesterday, Huawei founder Ren Zhengfei criticised the Trump administration, saying the US "underestimates" its resilience.

Last month, the vendor posted impressive revenues and profits growth for its Q1.

Sales rocketed up 39 per cent to $26.8bn, despite mounting pressure from the US and Europe over its links to the Chinese government.

However, in recent weeks, US firms have begun to fall in line with the US crackdown.

Google cut off Huawei's Android license over the weekend.

And while Microsoft has been silent on whether it will prevent Huawei from obtaining Windows licenses, it does appear to have dropped Huawei laptops from its store, according to reports.

The Cambridge-based firm has a headcount of 6,000 workers, and has eight offices in the US.