US revokes Intel, Qualcomm’s export licenses to sell to China’s Huawei, sources say

The US has revoked licenses that allowed companies including Intel and Qualcomm to ship chips used for laptops and handsets to sanctioned Chinese telecoms equipment maker Huawei Technologies, three people familiar with the matter said.

A fourth person said some of the companies were notified on Tuesday that their licenses were revoked effective immediately. The US Commerce Department earlier in the day confirmed it had revoked some licenses but stopped short of naming the companies.

A spokesperson for Intel declined to comment. Qualcomm did not respond to a request for comment and Huawei did not immediately respond. The move comes after the release last month of Huawei’s first AI-enabled laptop, the MateBook X Pro powered by Intel’s new Core Ultra 9 processor. The laptop launch drew fire from Republican lawmakers, who said it suggested to them that the Commerce Department had given the green light to Intel to sell the chip to Huawei.

“We have revoked certain licenses for exports to Huawei,” the Commerce Department said in a statement, declining to specify which ones it had withdrawn.

The Commerce Department’s move, first reported by Reuters, comes after concerted pressure by Republican China hawks in Congress who have been urging the Biden administration to take tougher action to thwart Huawei.

“This action will bolster US national security, protect American ingenuity, and diminish Communist China’s ability to advance its technology,” Republican Congresswoman Elise Stefanik said in a statement. The move could hurt Huawei which still relies on Intel chips to power its laptops, and could hurt US suppliers that do business with the company.

Intel has also been facing weak demand for its traditional data center and PC chips. Last month, it lost $11 billion in stock market value after forecasting second-quarter revenue and profit below market estimates. Huawei was placed on a US trade restriction list in 2019 amid fears it could spy on Americans, part of a broader effort to handicap China’s ability to bolster its military. Being added to the list means the company’s suppliers have to seek a special, difficult-to-obtain license before shipping.