Monday 20 May 2019 12:56 pm

Chipmaker Infineon suspends shipments to Huawei

German chipmaker Infineon has reportedly suspended shipments to Huawei, becoming the latest firm to cut ties with the Chinese telecoms giant.

Infineon’s decision to stop deliveries comes after the Trump administration blacklisted Huawei, which is the world’s second largest smartphone maker after Samsung, and Google restricted the company from some updates to the Android operating system.

Read more: Google suspends business with Huawei after US ban

US companies can not do business with firms on the blacklist unless they have a licence, however Infineon’s shipment suspension indicates that the crack down is beginning to affect suppliers in other countries.

Nikkei Asian Review reported today that Infineon will hold meetings this week to discuss the situation and make assessments.

Other chipmakers including Intel, Qualcomm, Xilinx and Broadcom have told employees they will not supply Huawei until further notice, Bloomberg reported today.

A spokesperson for Xilinx said: "We are aware of the denial order issued by the US Department of Commerce with respect to Huawei, and we are cooperating. We have no additional information to share at this time."

Meanwhile, Spanish firm Telefonia, which owns mobile network operator O2, said it is reviewing the US executive order to "understand any potential implications" for customers. 

The Philadelphia Semiconductor Index, which tracks 30 firms that design and distribute semiconductors and trades under SOX, was down 1.96 per cent this morning.

Shares in US chipmakers dipped this morning in pre-market trading. Qualcomm shares were down 4.17 per cent, Xilinx shares fell 4.54 per cent and Broadcom’s stock dropped 3.21 per cent.

Read more: China threatens to strike back after US Huawei ban

Huawei said it would continue to provide security updates and services after it was banned by Google.

“We will continue to build a safe and sustainable software ecosystem, in order to provide the best experience for all users globally,” the company said in a statement.