A recently introduced National Defense Authorization Act aims to severely restrict Defense Department contractors from supplying semiconductors, chip-manufacturing equipment, and semiconductor design tools to Huawei and its affiliates.
This bipartisan proposal is viewed as critical and is expected to be passed by Congress before the year's end.
If the legislation is enacted, it will pressure chip manufacturers to sever ties with Huawei, as doing business with the company may jeopardize their access to lucrative Pentagon contracts totaling approximately $460 billion in fiscal 2023.
This initiative is part of the US strategy to address China's technological ambitions.
Earlier this year, the US government also revoked licenses for Qualcomm and Intel, prohibiting them from selling chips to Huawei.
If passed, the new restrictions would become effective 270 days following the signing of the bill.
Source (paywalled)
