Chip designer ARM halts work with Huawei after US ban

LONDON -- British chip designer ARM has halted relations with Huawei in order to comply with a US blockade of the company, potentially crippling the Chinese company's ability to make new chips for its future smartphones.

Huawei, in common with Apple Inc and chipmakers such as Qualcomm, uses ARM blueprints to design the processors that power its smartphones. It also licenses graphics technology from the Cambridge-based company.

"ARM is complying with the latest restrictions set forth by the US government and is having ongoing conversations with the appropriate US government agencies to ensure we remain compliant," an ARM spokesman said in a statement.

"ARM values its relationship with our longtime partner HiSilicon (Huawei's chip arm) and we are hopeful for a swift resolution on this matter."

Huawei said it valued its close relationships with its partners, but it recogniZed the pressure some of them are under "as a result of politically motivated decisions."

"We are confident this regrettable situation can be resolved and our priority remains to continue to deliver world-class technology and products to our customers around the world," a spokesman said.

The United States blocked Huawei from buying US goods last week, jeopardizing ties with Alphabet Inc's Google, which provides the Android operating system and services like Gmail and Google Maps, as well as hardware partners such as ARM.

The US government temporarily eased restrictions on Huawei on Tuesday, granting it a licence to buy US goods until Aug. 19, meaning that updates of Google apps can continue until then.

The BBC reported earlier on Wednesday that ARM, which is owned by Japan's Softbank, had instructed employees to halt "all active contracts, support entitlements, and any pending engagements" with Huawei after the United States added Huawei to a list of companies with which US firms could not do business.

ARM said in an internal company memo that its designs contained technology of US origin, the BBC reported.

It told staff they were no longer allowed to "provide support, delivery technology (whether software, code, or other updates), engage in technical discussions, or otherwise discuss technical matters" with Huawei, according to the memo seen by the BBC.

Huawei's international partners are moving to distance themselves from the Chinese company until there is clarity over its relationship with U.S. technology partners that provide the apps and services that are crucial for consumers.

British mobile operators EE and Vodafone both said on Wednesday they had dropped Huawei smartphones from the imminent launch range of their 5G networks. 

source: news.abs-cbn.com

Acer says no plans to launch non-tablet devices on ARM

TAIPEI — Taiwan’s Acer Inc said on Monday it would remain closer to U.S. chipmaker Intel, even though Microsoft also embraces rival ARM for its new Windows 8 operating system.

The world’s No.4 PC vendor has given an upbeat outlook for the second half after delivering a quarterly net profit that lagged market expectations in April, betting on the launch of Microsoft’s new Windows system and more slimline ultrabook computers.

The company is recovering from two consecutive quarters of losses in April to September last year and a management shake-up.

Acer said on Monday, ahead of the opening of Taiwan’s annual Computex trade fair, that it would formally launch new ultrabook and tablet designs after Microsoft puts its new windows system in the market, expected in the fourth quarter, with the first shipments starting in August and volume shipment commencing in September.

The first wave of Windows 8 products will be using Intel chips, while ARM-based designs will not be in market until 2-4 months later, expected in the first quarter.

“Finally the couple (Windows and Intel) recover their relationship,” Acer Chairman J.T. Wang told reporters at a small group interview. “We are more familiar with the Windows ecosystem, our supply chain is also mainly in the Window ecosystem.”

Wang said Acer has no plans so far to launch non-tablet devices using ARM designs.

“According to engineer studies, unless we go into ARM 64-bit, otherwise performance is still not so great,” he said. “ARM is a newcomer, young and attractive but it takes some time.”

Acer is showcasing new tablet computer models in slate and convertible design – or with and without conventional keyboards – based on the Windows 8 system at Computex this year, as well as two touch ultrabooks, which use aluminium metallic casings which enable cost competitiveness, and come in 12mm thickness.

“I have never been so supportive to Microsoft,” Wang told a news conference earlier on Monday. “We have a good opportunity to grow again after the Windows 8 launch. Acer is fully committed to deliver a full line of Windows 8 products.”

Acer said prices for these new gadgets would be announced after the launch of Windows 8. But in a powerpoint at the presentation it said the touch ultrabook would range from $1,799, significantly higher than the below $1,000 non-touch ones currently in the market.

Ultrabooks are an ultra-thin notebook PC that is similar to Apple Inc’s Macbook Air and offers some of the technological chic of the iPad and other tablets.

But some investors are concerned that the expensive components used in ultrabooks, such as solid-state drives, make them too pricey for many consumers.

In April, Acer lowered its ultrabook shipment contribution forecast for 2012 to 12-20 percent from 25-35 percent, but still saw its ultrabook shipments in the second quarter would double from the first quarter and they would keep growing for the rest of the year, with four new models planned.

source: interaksyon.com