The US hits Huawei: Withdraws permits for chip shipments

The United States has withdrawn licenses for companies such as Intel and Qualcomm to supply 4G chips for laptops and cellphones to Chinese telecommunications equipment maker Huawei Technologies, three sources said.

“We have withdrawn certain export licenses to Huawei,” the Ministry of Trade reported, without specifying which licenses were involved.

An Intel spokesman declined to comment, Qualcomm did not respond to a request for comment on the license withdrawal, and Huawei did not immediately respond.

In 2019, Huawei was included in the US list of trade restrictions, with the rationale that Beijing could use its technology for espionage and to strengthen the military. With the new regime, Washington has determined that domestic suppliers must obtain special permits for export.

American companies have obtained licenses worth billions of dollars, including a particularly controversial green light from the Trump administration, which allowed Intel to supply central processors for Huawei’s notebook computers from 2020.

The withdrawal of licenses followed Huawei’s launch in April of its first artificial intelligence notebook, the MateBook X Pro, which is powered by Intel’s new Core Ultra 9 processor. shops.

“The move (by the Department of Commerce – op. ed.) will strengthen American national security, protect American innovation and limit the capabilities of communist China to develop technology,” the Republican congresswoman said in a statement. Elise Stefanik.

The decision of the Ministry of Commerce could harm Huawei, but also American suppliers. Intel has been struggling with weak demand for data centers and desktop chips, and its market value fell $11 billion in April, reflecting investors’ disappointment in revenue forecasts. and get in the second trimester.

Qualcomm sold older 4G mobile chips to Huawei under a 2020 license. In a recent submission to the regulator, the company stated that, starting next year, it no longer expects income from the sale of chips to the Chinese company.

Qualcomm also entered into an agreement with Huawei on patent rights that govern the use of its portfolio of 5G technologies. The Chinese company started using a 5G chip manufactured by its subsidiary HiSilicon last year.

Qualcomm stated in the filing that the patent agreement with Huawei expires at the beginning of fiscal year 2025 and that they are discussing its extension.

Critics claim that the permits enabled the Chinese company to recover from the consequences of American sanctions. Huawei shocked the industry last summer with a new phone powered by a sophisticated chip from Chinese manufacturer SMIC.

The new phone catapulted Huawei’s sales, which jumped 64 percent in the first six weeks of this year compared to the same period last year, according to research firm Counterpoint.

By Editor

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