The global chip and smartphone industries are preparing for serious disruption after the United States imposed tougher sanctions on China's Huawei Technologies co LTD, British media said.

According to the Financial Times website on August 18, Washington said on Monday that no company in the world could sell semiconductors made with US software or equipment without permission, at any stage of the deal, as long as Huawei was involved.

The move complements rules issued in May, the report said. The May rules allow Huawei to buy off-the-shelf chips as long as they are not specifically designed for the company.

Given the dominance of U.S. components in some phases of chip manufacturing, the new rules amount to a blanket ban on sales of any chips to Huawei, which would hit the company's 5G equipment and handset businesses, observers said.

The tougher US measures come as Huawei is vying for the title of the world's largest mobile phone maker and is trying to roll out its 5G network around the world over Washington's objections, the report said.

According to the Financial Times website on August 18, tens of billions of dollars have been wiped off the market value of Asian chipmakers after the US announced new sanctions against Huawei. One analyst said the new sanctions amounted to a "death sentence" for the Chinese telecoms group.

Mediatek's shares fell 9.9 per cent on Monday, while Hong Kong-listed hardware makers Sainty Optical And Ruisheng fell 11.5 per cent and 5.3 per cent respectively. All three companies supply Huawei with technical components.

Shares in Huawei's rivals were boosted by news of the sanctions. Shares in Samsung Electronics, the world's biggest maker of smartphones and computer chips, rose 3.3 per cent in Seoul.

American chip companies are also in trouble, according to a report on the Website of the Economist on August 18. The Semiconductor Industry Association, which represents the companies, said it was' shocked and concerned 'by the government's sudden shift away from a balance between national security and corporate interests. Huawei bought $19 billion worth of components from U.S. companies last year.