The new defense authorization bill unveiled Saturday will make it nearly impossible for Defense Department contractors to sell semiconductors, chipmaking equipment and semiconductor design tools to Huawei and its partners.The bill was jointly proposed by both parties and is considered a "must pass" bill before the U.S. Congress adjourns.
If the bill is passed, it will force chip companies to stop cooperating with Huawei or risk losing opportunities to cooperate with the Pentagon. The Pentagon has committed approximately $460 billion in contracts for fiscal year 2023, which is a lot of potential business.
The bill is part of renewed U.S. efforts to regulate Chinese technology. Earlier this year, the U.S. government revoked Qualcomm and Intel's licenses to sell chips to Huawei.
If the bill passes Congress, the restrictions will take effect 270 days after signing.