The US semiconductor industry is up in arms over delays in awarding special licences that will allow them to deal with Chinese telecom networking giant Huawei.

They’re concerned the delays could weaken the US semiconductor industry, leading to lower profits that will force some companies to cut research and erode their dominance in the sector.

The US Semiconductor Industry Association includes heavyweights such as Intel, Qualcomm and Texas Instruments.

Huawei is the third-largest buyer globally of US semiconductors and the dispute is having a wide-ranging effect on the Chinese company.

Its share of the smartphone market has fallen in the latest quarter to 8.7 percent from 11.8 percent in the previous three months, according to market watcher IDC.