While this doesn't explicitly confirm the existence of the Arm staff memo reported by the BBC, it now seems likely that Arm's business deals with the Chinese firm are affected by the US sanctions. According to reports, the Kirin 985 is not expected to be affected by ARM's decision, but this move does cast a doubt over Huawei's future chip development endeavours.
EE has abandoned plans to launch Huawei phones as part of its 5G roll out, just days after Google said it would restrict the Chinese company from using its Android operating system. "We are confident this regrettable situation can be resolved", they added.
The BBC today reported that ARM told employees to suspend "all active contracts, support entitlements, and any pending engagements" with Huawei because of the company's addition to a blacklist by the U.S. Department of Commerce.
Huawei has reportedly stockpiled enough components to keep it going for somewhere between three months to a year.
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"ARM is complying with all the laws and regulations set forth by the US government", a spokesman for the company said Wednesday. Although they don't manufacture processors themselves, its designs or architecture are licensed by several other chipmakers including Apple, Qualcomm and Huawei for its mobile processors.
Huawei has been facing blow after blow in its business relations across companies from around the world, especially USA companies after it was put on a trade blacklist by the Trump administration.
Huawei is accused of posing a security threat to Western nations due to its alleged ties with the Chinese government.
Although ARM is owned by Japan's SoftBank and is based out of Cambridge, UK, its designs contain "US origin technology", and as such the vendor is severing ties with Huawei.
ARM has been approached for comment.