SoftBank-owned chip designer Arm reportedly cuts ties with Huawei

The Huawei logo is display during CES 2018 at the Las Vegas Convention Center on January 9, 2018 in Las Vegas, Nevada.

David Becker | Getty Images News | Getty Images

Arm Holdings, the British chip designer owned by SoftBank, is reportedly suspending business with Huawei.

The firm instructed employees to halt “all active contacts, support entitlements, and any pending engagements” with the Chinese telecommunications, the BBC reported, in order to comply with U.S. trade restrictions.

“Arm is complying with all of the latest regulations set forth by the U.S. government,” a spokesperson for the company told CNBC by email, but declined to comment further.

Huawei was not immediately available for comment when contacted by CNBC.

The news is another blow for Huawei, which has faced intense political pressure from Washington over national security concerns. The U.S. administration recently added the firm to a trade blacklist that blocks it from buying U.S. technology without special approval.

Google had come out as an early mover in distancing itself from Huawei, however the tech giant recently said it would resume business with Huawei over the next 90 days after the U.S. eased restrictions on mobile and internet broadband firms.

It also comes as EE, the U.K. mobile network operator owned by BT, said it would put the launch of Huawei 5G smartphones on pause.

You can read more about Arm’s decision here.

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