Taiwan's Hon Hai has cancelled a deal to procure 4G network equipment from Huawei, due to the government's concerns over sourcing equipment from Chinese vendors.
Hon Hai affiliate Ambit Microsystems has resubmitted its application covering the design for its planned 4G network to exclude any mainland-manufactured equipment, wire service AFP reported.
Ambit had previously announced plans to award Huawei a $178 million deal to provide equipment for its network rollout. But regulators had objected on national security terms, and in May were reportedly considering banning the use of Chinese-made base stations in Taiwan.
Taiwanese telecom laws already prevent the use of Chinese core telecom equipment, but Ambit had argued that this doesn't apply to base stations, handsets and network infrastructure cards.
This marks the latest setback for Huawei due to its country of origin. The vendor has previously been hit with government bans or opposition based on alleged national security concerns in the US, Australia and South Korea.
Taiwan and China are still technically at war despite the reconciliation progress made under Taiwanese president Ma Ying-jeou.