5G Trifecta III: Stepping on Huawei’s Air Hose
Krach’s final step in robbing Huawei of its momentum–the third prong of the 5G Trifecta–was to prevent Huawei from circumventing U.S. export controls by purchasing chips from non-U.S. suppliers like TSMC. Under Krach’s leadership, the State Department partnered again with the Commerce Department to block Huawei’s access to the advanced semiconductors made by foreign firms. This included any chips developed or produced using U.S. software or technology. Huawei needed these chips to produce its 5G equipment and sophisticated smartphones. This move was so successful that Huawei was forced to sell their 5G smartphone business six months later.