Making matters worse for Huawei after the US ban, British semiconductor company ARM has halted all active contracts and engagements with the company. According to a spokesman for ARM, “ARM is complying with the latest restrictions set forth by the U.S. government and is having ongoing conversations with the appropriate U.S. government agencies to ensure we remain compliant.”

This news comes on the back of Panasonic’s announcement on Wednesday to stop shipping some components to Huawei. ARM’s latest decision is set to have a bigger effect on Huawei’s smartphone business as its US-designed chips form the backbone of Huawei devices.

Australia and New Zealand have joined the US in blocking Huawei from bidding for contracts in their countries over threat to national security. According to news reports, the US is pressurizing Britain and South Korea also to follow suit and impose bans on Huawei.