Huawei Faces Impact as US Commerce Department Revokes Laptop Chip and Handheld Device Licenses for Intel and Qualcomm

Licenses of Intel and Qualcomm to sell chips to Huawei were revoked

The US Department of Commerce has revoked the license to sell laptop chips and handheld devices to Huawei Technologies from Intel and Qualcomm, as confirmed by Reuters. The department did not name the specific companies but stated that several export licenses to Huawei had been revoked. This decision comes after Huawei released its first AI-powered laptop, the MateBook X Pro, which is powered by Intel’s new Core Ultra 9 processor.

Huawei’s reliance on Intel chips for laptops could be negatively impacted by this decision. Additionally, American suppliers doing business with Huawei are also expected to suffer losses. In 2019, Huawei was placed on the US trade restrictions list for security reasons, requiring suppliers to obtain special licenses to trade with the company.

Sources from Reuters revealed that these licenses were granted to Intel and Qualcomm for the sale of laptop chips and handheld devices. American companies have received licenses to sell goods and technology to Huawei over the years, but some licenses have faced controversy. For example, in 2020, the Trump administration approved Intel to supply central processors to Huawei for use in laptops. Qualcomm also has a license to sell older generation 4G chips to Huawei.

Critics argue that these licenses have contributed to Huawei’s resurgence in the market despite US export restrictions. Despite being placed on the trade restrictions list in 2019, Huawei has continued its growth and expanded into various sectors such as smartphones and smart car components equipped with chips from Chinese manufacturers like Qualcomm and MediaTek.

The US government’s decision to revoke these licenses is likely due to growing concerns about national security risks associated with selling technology components

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