US revokes Intel, Qualcomm licenses to sell chips to Huawei
the United States has revoked licenses allowing Huawei technologies co. to buy semiconductors from Qualcomm and intel, according to people familiar with the matter, further tightening export restrictions against the chinese telecom equipment maker.
the decision will affect sales of chips for use in Huawei phones and laptops, according to the people, who discussed the move on condition of anonymity. House foreign Affairs committee chairman michael mccaul confirmed the administration’s decision in an interview tuesday. He said the move is key to preventing china from developing advanced artificial intelligence.
“it’s blocking any chips sold to Huawei,” said mccaul, a texas Republican who was briefed about the license revocations for intel and Qualcomm. “those are two companies we’ve always worried about being a little too close to china.”
While the decision may not affect a significant volume of chips, it underscores the US government’s determination to curtail china’s access to a broad swathe of semiconductor technology. Officials are also considering sanctions against six chinese firms that they suspect could supply chips to Huawei, which has been on a US trade restrictions list since 2019.
intel expects revenue to fall “below the midpoint” of its previously guided range of $12.5 billion to $13.5 billion in the second quarter due to the ban, it said in a statement on Wednesday.
Qualcomm confirmed in a statement Wednesday that commerce had revoked one of its licenses to sell to Huawei and said that it “will continue to comply with all applicable export control regulations.”
Withdrawing the export licenses is “economic coercion” and violates World trade Organization rules, china’s ministry of commerce said in a statement on Wednesday.
the US commerce Department confirmed the withdrawal of “certain licenses” for exports to Huawei, but declined to offer specifics. the Democratic administration has come under pressure to do more to stop Huawei and other chinese tech companies after signs of progress in the country’s semiconductor development.
“We continuously assess how our controls can best protect our national security and foreign policy interests,” the agency said in a statement tuesday.
Qualcomm recently said that its business with Huawei is already limited and will soon shrink to nothing. it has been allowed to supply the chinese company with chips that provide older 4G network connections. it’s prohibited from selling ones that allow more advanced 5G access.
Huawei doesn’t rank as a top customer of either Qualcomm or intel, according to bloomberg supply chain analysis.