American lawmakers have introduced a new defense bill to prevent the Pentagon from working with firms supplying computer chips and related services to Huawei Technologies Co.

This proposal is part of the bipartisan National Defense Authorization Act (NDAA), disclosed on Saturday.

The legislation would bar Defense Department contractors from selling semiconductors, chip-making tools, and chip design equipment to Huawei and its affiliates.

If the bill becomes law, it could significantly impact global semiconductor firms associated with Huawei.

These firms could lose Pentagon contracts, which amounted to nearly US$460 billion in fiscal year 2023, according to data from the Government Accountability Office.

Recent Huawei developments