A new National Defense Authorization Act, unveiled on Saturday, will make it nearly impossible for Defense Department contractors to sell semiconductors, chip-making equipment, and tools for designing semiconductors to Huawei and its partners.
The provision is bipartisan and is considered a “must-pass” before US Congress adjourns for the year.
Should the bill pass, it would squeeze chip companies to stop working with Huawei or risk losing access to working with the Pentagon, which has committed some $460 billion for contracts in fiscal 2023. That’s a lot of potential business to risk losing.
The bill is part of the US’s renewed efforts to manage China’s tech aspirations.
Earlier this year, the US government revoked the licenses of Qualcomm and Intel to sell chips to Huawei.
Should the bill pass in Congress, the restrictions will take effect 270 days after being signed.
