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Commerce Department Tightens Restrictions on Huawei’s Access to Chips - Wall Street Journal

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The Commerce Department further tightened curbs on the Chinese company’s ability to obtain components.

Photo: Waldo Swiegers/Bloomberg News

The Commerce Department issued new rules restricting Huawei Technologies Co.’s access to foreign-made chips, further tightening U.S. curbs on the Chinese telecom giant’s ability to obtain crucial components.

In an announcement Monday, the Commerce Department said it was restricting Huawei’s ability to acquire foreign-produced chips that were built using U.S. technology. The new rules build on restrictions announced in May that blocked Huawei from acquiring chips it designed itself that were made using U.S. technology.

The department also added another 38 Huawei affiliates in 21 countries to its “Entity List,” which prevents companies from exporting U.S. technology to those entities without a license. Huawei itself was added to the list last year.

“As we have restricted its access to U.S. technology, Huawei and its affiliates have worked through third parties to harness U.S. technology in a manner that undermines U.S. national security and foreign policy interests,” Commerce Secretary Wilbur Ross said in a statement. “This multi-pronged action demonstrates our continuing commitment to impede Huawei’s ability to do so.”

Write to Dan Strumpf at daniel.strumpf@wsj.com

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