U.S. cracks down on global chip exports to Huawei, & expects China's retaliation
WASHINGTON — The Trump administration on Friday moved to block global chip supplies to blacklisted telecoms equipment giant Huawei Technologies, spurring fears of Chinese retaliation and hammering shares of U.S. producers of chipmaking equipment.
A new rule, unveiled by the Commerce Department and first reported by Reuters, expands U.S. authority to require licenses for sales to Huawei of semiconductors made abroad with U.S. technology, vastly expanding its reach to halt exports to the world’s No. 2 smartphone maker.
News of the move against the firm hit European stocks as traders sold into the day’s gains, while shares of chip equipment makers like Lam Research and KLA Corp fell around 5 percent in U.S. trading.