U.S. Tightens Rules to Crack Down on Huawei’s Chip Supply

The US has imposed new rules requiring global chipmakers using US technology to obtain a license before selling to Huawei, labeling the company a national security threat. This move affects both American and international companies, including TSMC, and is expected to disrupt the global semiconductor supply chain. China may retaliate by targeting US companies, and is increasing investment in its domestic chipmaking industry to reduce reliance on US technology.

What is the primary requirement of the new US rules for chipmakers regarding Huawei?

• To increase the price of chips sold to Huawei

• To stop all sales to Huawei

• To obtain a license before selling to Huawei

• To collaborate with Huawei on technology

Which international company is mentioned as being affected by the US restrictions on Huawei?

• Qualcomm

• TSMC

• Intel

• Samsung

What potential action might China take in response to the US restrictions?

• Increase tariffs on US goods

• Ban US companies from China

• Publish an unreliable entities list

• Invest in US technology

How is China planning to reduce its reliance on US technology?

• By forming alliances with US companies

• By increasing imports from Europe

• By reducing semiconductor production

• By investing in local chipmakers

What is the expected outcome of China's investment in its semiconductor industry?

• A reduction in semiconductor demand

• A decrease in global semiconductor prices

• An acceleration of domestic chipmaking capabilities

• An increase in US technology imports