Panasonic halts component shipments to Huawei

Panasonic has halted shipments of some components to Huawei in order to comply with US export restrictions.

The Japanese group said it had sent an “internal notification that it should suspend transactions with Huawei and its 68 affiliates that were banned by the US government”.

Panasonic said the ban applies to its goods that are comprised of 25 per cent or more of US-based technology, software or materials. It declined to specify which of its components were affected, but the company considers the impact on its earnings to be limited for now.

The decision by Panasonic came as UK chip designer Arm, which is owned by Japan’s SoftBank, said it would stop licensing essential technology to Huawei so it can comply with the US ban order issued last week.

The U.S. Commerce Department blocked Huawei from buying U.S. goods last week, saying the firm was involved in activities contrary to national security.

The United States temporarily eased the restrictions on Huawei on Monday, to minimise disruption for customers.

Via The Financial Times