Japan's Panasonic said it was halting business with Huawei to comply with US restrictions, dealing a fresh blow to the Chinese telecoms firm, ONA reports citing BBC.
Last week the US put Huawei on a list of companies that American firms cannot trade with unless they have a licence.
The ban applies to goods having 25% or more of US-originated materials, according to reports.
The restrictions mark an escalation in US efforts to block Huawei, which it says poses a security risk.
"Panasonic announced in [an] internal notification that it should suspend transactions with Huawei and its 68 affiliates that were banned by the US government," the firm said in a statement.