In the latest event in the quickly moving saga that is Huawei’s technology export blacklisting by the United States Government, the BBC has published a report this morning claiming that IP vendor Arm has “suspend business” with Huawei and its subsidiaries. If this is correct, then it would represent a massive setback for Huawei’s hardware development efforts, as the company and its HiSilicon chip design subsidiary rely heavily on Arm’s IP for its products.

According to the BBC News report, Arm has almost entirely severed ties with Huawei, with the company instructing employees that they are not to “provide support, delivery technology (whether software, code, or other updates), engage in technical discussions, or otherwise discuss technical matters with Huawei, HiSilicon or any of the other named entities”.

Huawei, for its part, is one of Arm’s top customers and a close ecosystem partner, shipping countless numbers of chips and devices with Arm IP in it every year. The company is a leading-edge implementer of new Arm CPU and GPU IP, and in the last few years has been the first vendor to ship chips using Arm’s latest Cortex-A series CPUs. Furthermore, via HiSilicon, Huawei is also an ARMv8 CPU architectural licensee. As a result of their close workings with Arm, Huawei has built up a significant amount of their product portfolio around Arm technologies, including their Kirin consumer SoCs and Kunpeng server SoCs. So being cut off from Arm would touch virtually every aspect of Huawei’s hardware business, from smartphones to networking gear.

Meanwhile Arm, for its part, is headquartered in the UK and not the US. However as a multi-national company, Arm develops its technology around the world, including its major design centers in San Jose and Austin. As a result, according to the report, Arm has deemed that its designs contain “US origin technology”, and as a result make it subject to the US technology blacklist.

What’s less clear, however, is just how much Huawei will be impacted by Arm’s suspension and how soon. The BBC’s report indicates that Arm’s suspension only involves further technology transfers and development, and that the company can continue to manufacture chips based on technology they already have – including chips that have finished development and are coming on the market later this year. In which case Huawei wouldn’t immediately feel the impact of the suspension, as the long lead time on chip design means it would be a bit until that development pipeline runs dry. However it’s not as clear what this means for HiSilicon’s Arm architecture license as a whole, and if and how that could be rescinded.

For now, the full ramifications for Huawei are going to depend heavily on whether they remain on the US technology blacklist, or if at some point they are removed or otherwise granted a waiver. If Huawei is reinstated, then the company can continue development of their current product pipeline – though the company would want to take a hard look at moving away from US-sourced IP anyhow to prevent a repeat of this event. Otherwise if they remain cut-off from Arm, then Huawei is without a doubt going to be left in a tough spot and will be forced to go it alone. This is where the nuances of their Arm architecture license come into play – if the company can legally develop their own hardware using the Arm ISA – but either way Huawei would need to increasingly develop its own IP and license other parts from non-US sources.

Ultimately it’s been clear from the start that the US technology blacklisting would have severe repercussions for Huawei. However of all of Huawei’s US-bound technology partners, there is arguably none more important than Arm. So losing access to Arm’s IP could very well cripple the company.

In the meantime, we’ve reached out to Huawei and Arm for further comment.

Source: BBC News

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  • Notmyusualid - Wednesday, May 22, 2019 - link

    @ Spunjji - But unfortunately you are incorrect. This is the only way to fight a bully is head on. Reply
  • Reflex - Wednesday, May 22, 2019 - link

    To be honest, these moves encourage IP theft. The Chinese market and third world nations are enormous and don't care where the tech comes from. Simply ignoring western IP laws going forward still leaves them 2//3 of the planet's population to sell products to... Reply
  • Notmyusualid - Wednesday, May 22, 2019 - link

    @ 06GTOSC - exactly my point of view also. Reply
  • willis936 - Wednesday, May 22, 2019 - link

    I don't think US markets are dependent on Chinese tech. Reply
  • bortiz - Wednesday, May 22, 2019 - link

    I seem to remember that ARM was bought by a Chinese venture firm. Most likely scenerio, if pressured, ARM operations would seize in US and US firms would be blocked from ARM IP. Remember that 60% of TVs are sold in China, as well as cameras. China represents at least half of consumer electronics sales. The answer is to what will happen is very simple. Reply
  • Ariknowsbest - Wednesday, May 22, 2019 - link

    A Japanese company Softbank via their Vision Fund bought ARM. MIPS was bought by Chinese venture fund Reply
  • s.yu - Wednesday, May 22, 2019 - link

    lol ARM Suspends Business with Huawei, read the title. Reply
  • Spunjji - Wednesday, May 22, 2019 - link

    Nobody said the US markets are dependent on Chines tech - it's about their manufacturing capabilities. Reply
  • Yojimbo - Wednesday, May 22, 2019 - link

    2x-5x the price? Not a chance. Products can be made other places. Eventually China will realize they can no longer get away with what they could get away with when their economy was 1/10th the size. They will agree to operate more fairly.

    The trade war is long-term thinking. The US, and the world, really, must apply the pressure now. The status quo can be very difficult to change if there is not a stick to hold. The short term think would be to worry about "economic hardship" over the next 2 or 3 years while the whole thing plays out and then pay for that over the next 50 years while you are robbed blind.
    Reply
  • wilsonkf - Wednesday, May 22, 2019 - link

    When you say products can be made other places, ask Mr. Trump why he gave up TPP. Everyone knows you don't move out of your old house before finding a new one. Reply

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