President Trump last week issued a ban prohibiting American telecommunications firms from installing foreign-made equipment that could threaten national security. The order instructed the commerce secretary, Wilbur Ross, to stop transactions “posing an unacceptable risk.” Although the order did not single out specific companies, it was widely believed to be directed at Huawei and others in China’s tech sector.
On the same day, the Commerce Department added Huawei to a list of companies deemed to be national security risks, effectively preventing it from buying American parts and technology without special permission from Washington.
Since then, chip makers, including the German supplier Infineon, have said they would restrict their business dealings with Huawei. “In any market where Infineon operates, we fully comply with all applicable legal requirements, laws and regulations,” the company said in a statement.
Intel and Qualcomm, two of the world’s largest makers of chips, have also told employees to cease working with Huawei until further notice, according to Bloomberg. Intel declined to comment, and Qualcomm did not respond to requests for comment.
On Monday, shares in Qualcomm and Infineon were trading about 5 percent lower; Intel was down more than 1 percent. Shares in Alphabet, Google’s parent, were down about 1.6 percent.
The American campaign against Huawei coincides with preparations by countries around the world to build the next-generation wireless networks known as 5G. The new networks are expected not only to bring faster cellular service, but also to connect new devices like medical tools, industrial equipment and autonomous cars to the internet.
The actions put pressure on American allies that have so far resisted urging from the Trump administration to issue complete bans against Huawei. James Lewis, a senior vice president and the director of the technology policy program at the Center For Strategic and International Studies, said that most European countries would prefer a softer approach.