The plan to block Huawei’s supply of chips has a serious flaw and U.S. officials are seeking to close it

Although the new rules of the US Department of Commerce have caused difficulties for Huawei’s supply of chips. They forced TSMC to cancel a giant order worth Huawei’s chips worth up to $ 700 million and only continue to produce old orders.

However, these new rules also have a serious flaw that could allow Huawei to still get the chips it wants. Those are the new rules that prohibit just shipping Huawei-designed chips, but they don’t ban direct chip shipments to Huawei customers.

Therefore, Huawei customers can fully order chips from chip makers and then attach them to Chinese company’s equipment. This way, even if these chips are not shipped to Huawei, the company benefits from them.

Therefore, on Wednesday, when asked about the loophole in this policy, US State Department official Christopher Ashley Ford said the new regulation itself will give managers a suitable view. to decide whether to edit it or not.

This new regulation will “give us more information on which we can make export management decisions as we move forward and try to find the right answers to these challenges, including modifications, if necessary, if Huawei seeks to evade our regulations in some way. ”

He added that managers will keep a close watch and “will definitely make any changes we think are necessary.”

Refer to Firstpost