US Revokes Export Licenses of Intel and Qualcomm, Restricting Sales to Huawei
The US has revoked export licenses of Intel and Qualcomm, preventing them from selling chips to Huawei. The move comes after the launch of Huawei's AI-enabled laptop powered by Intel's processor. The decision is a response to pressure from Republican lawmakers urging tougher action against Huawei.
The decision, confirmed by the US Commerce Department, comes as part of a broader effort to curb Huawei's access to advanced technology.
The revocation of licenses was effective immediately, according to sources familiar with the matter. While the Commerce Department did not disclose the names of the affected companies, it is reported that Intel and Qualcomm were among them. Intel declined to comment, while Qualcomm did not respond to requests for comment. Huawei has yet to issue a statement regarding the development.
The decision to revoke the licenses follows the recent launch of Huawei's AI-enabled laptop, the MateBook X Pro, which is powered by Intel's new Core Ultra 9 processor. This launch drew criticism from Republican lawmakers who believed it indicated that the Commerce Department had granted permission for Intel to supply chips to Huawei.
The move by the Commerce Department is a response to pressure from Republican China hawks in Congress, who have been urging the Biden administration to take a tougher stance against Huawei. Republican Congresswoman Elise Stefanik praised the decision, stating that it would enhance national security, protect American innovation, and limit China's technological advancements.
The revocation of licenses could have a significant impact on Huawei, as the company heavily relies on Intel chips for its laptops. Additionally, US suppliers that have been doing business with Huawei may also face repercussions.
Intel has been facing challenges in the market, with weak demand for its traditional data center and PC chips. The company recently experienced an $11 billion drop in stock market value after forecasting lower-than-expected revenue and profit for the second quarter.
Huawei was added to the US trade restriction list in 2019 due to concerns over potential spying activities. Being on the list requires the company's suppliers to obtain special licenses before exporting goods and technology. However, Huawei has received licenses worth billions of dollars, including a controversial authorisation from the Trump administration that allowed Intel to supply central processors for Huawei laptops since 2020.
Qualcomm, on the other hand, has been selling older 4G chips to Huawei since receiving a license in 2020. However, the company does not expect to generate further chip revenue from Huawei beyond this year. Qualcomm still licenses its portfolio of 5G technologies to Huawei, but negotiations to renew the patent deal are underway.
Critics argue that such licenses have contributed to Huawei's resurgence in the market. Despite export restrictions, Huawei managed to release a new phone powered by a sophisticated chip manufactured by Chinese chipmaker SMIC last year. This move, along with its smart car component business, has contributed to Huawei's strong revenue growth.
The US has revoked export licenses of Intel and Qualcomm, preventing them from selling chips to Huawei.
The move comes after the launch of Huawei's AI-enabled laptop powered by Intel's processor.
The decision is a response to pressure from Republican lawmakers urging tougher action against Huawei.
Source: REUTERS