What is being hinted at is that the US may just crush Huawei itself altogether. Bloomberg article is wrong, or rather misses a key point: the export ban was actually enacted, not just threatened. This was the immediate result of that and what I was referring to with my first post in the thread.
China's second largest manufacturer of telecom equipment and the number four smartphone maker in the United States, ZTE, is on its way to shutting down after the US government banned the company from doing business with American component suppliers, including chipmakers Qualcomm and Intel, both of which it relied heavily on for parts used its smartphones. The company's future may now depend on an appeal to modify or reverse the 7-year ban.
The news was revealed in a press release which noted that, "the major operating activities of the company have ceased".
ZTE's English-language homepage has also been stripped of much of its content, including its online store, apparently signifying that the company's days are numbered, at least in Western markets.
Huawei's computers and data centers run on Intel (US) processors while mobile handsets are dependent on radio frequency units made by Qorvo (US). Its 5G base stations incorporate components produced by Xilinx (US) while Texas Instruments (US) provides the analog semiconductors for them.
It also relies on Micron (US) for the memory chips that go into their smartphones although they could feasibly switch to SK Hynix (South Korea) on that front. The US tells SK not to and they won't. Between Samsung and SK Hynix, South Korea actually has 75% of the DRAM market with the only other major player being Micron - who China conspired to steal $9 billion worth in trade secrets from.
I point out the fact of market share - in what is currently the most lucrative semiconductor segment, no less - because this isn't just a matter of the US acting in an aggressive, anti-competitive manner out of spite. I happen to think Huawei a relatively self-capable firm (think about that, considering how much of an anti-CCP radical I am). They're paying the price for China's state directed policies, acts and practices on the whole.