When the going gets tough, the tough get going. US semiconductor companies are slowly adjusting to the United States-China trade war. As US-based chip firms adjust their supply chains to avoid tariffs, they are having difficulty coming to terms with the trade restrictions on Huawei. The confusion around the Huawei trade restrictions makes it difficult for chip companies to plan their production cycles.
First, President Donald Trump banned all US companies from trading with Huawei. Then he gave a 90-day waiver to allow companies to adjust to the ban. This waiver only applied to equipment and services needed to continue operation of existing products and networks.
Even before the 90 days expired, Trump eased the ban and announced that US firms would be granted provisional licenses to ship to Huawei. Just last week, Trump told reporters, “It’s much simpler not to do any business with Huawei. So, we’re not doing business with Huawei.”