The BBC reported that an internal document instructed ARM employees to stop "all active contracts, support entitlements, and any pending engagements” with Huawei, following an American ban.
ARM, a British company, is owned by Softbank, a Japanese fund.
On 16 May, the US imposed a ban on Huawei and 68 of its affiliates, preventing the company from importing components from American companies without government approval. Some of the affiliates are in other countries like Canada, Japan, Brazil, the UK, Singapore and others.
The internal ARM document said its designs contained technology which originated in the US, the BBC said.
On Monday, Google announced it was cutting off Huawei's access to future updates of Google's Android and Google Play Store.
Huawei uses Android in its smartphones. Some parts of Android, like the kernel, which is a modified version of Linux, are under open-source licences.
On Tuesday, the US Commerce Department eased some of the restrictions, allowing Huawei to maintain and update existing networks and handsets.
A Huawei spokesperson was quoted as saying: "We value our close relationships with our partners, but recognise the pressure some of them are under, as a result of politically motivated decisions.
"We are confident this regrettable situation can be resolved and our priority remains to continue to deliver world-class technology and products to our customers around the world."