The US has just revoked some chip export licenses for Huawei to restrain China’s technological power.
In a statement on May 7, the US Department of Commerce said it continuously evaluates export control measures. “can best protect our national security and foreign policy interests, given the constantly changing threat environment and technological landscape”. A ministry spokesman confirmed that it had revoked some export licenses for Huawei.
Huawei was placed on the US trade blacklist in 2019, which prohibits US companies from selling technology – including 5G chips – to the Chinese technology “giant” due to national security concerns. In 2020, the US tightened chip restrictions on the company, requiring foreign manufacturers using US chipmaking equipment to apply for a license before selling semiconductors to Huawei.
Huawei’s consumer business, including smartphones and laptops, is reviving after the launch of the Mate 60 Pro smartphone in August 2023.
Analyzing the Mate 60 Pro, semiconductor information firm TechInsights discovered an advanced chip produced by China’s leading chip foundry, SMIC. It also supports 5G connectivity, a feature that US sanctions seek to block.
American chip companies – Qualcomm and Intel – are two of the companies supplying chips to Huawei. In a filing with the US Securities and Exchange Commission earlier this month, Qualcomm said it expected operations to be “further impacted” as customers such as Huawei are developing their own chips.
The US continues to seek ways to block the technological progress of Huawei and China. Photo: Reuters
According to sources of Reuters, the US revoked licenses allowing companies, including Qualcomm and Intel, to sell chips used in laptops and handheld devices to Huawei. Companies were notified on May 7 and the decision took effect immediately.
Last month, Huawei launched a new phone line – the Pura 70 – in an attempt to challenge Apple in China. The iPhone manufacturer is facing pressure from Huawei on the mainland as iPhone sales decreased by 19.1% in the first quarter of the year, while Huawei’s smartphone sales increased by 69.7%, according to research firm Counterpoint Research.
Net profit in 2023 rose 144.5% from a year ago to 87 billion yuan (about $12 billion) thanks in part to sales of the Mate 60 Pro at home.
Not only that, Huawei also introduced the first AI laptop – MateBook X Pro using the new Intel Core Ultra 9 chip. The device fanned the flames of criticism from Republican lawmakers because they believed that the US Department of Commerce had given Intel the green light to sell chips to Huawei.
In a statement, Republican congresswoman Elise Stefanik commented that the US Department of Commerce’s decision to revoke the license will strengthen national security and reduce China’s ability to upgrade technology.
The move could affect Huawei because it still depends on Intel chips in its laptops, as well as impact American suppliers doing business with the company.
(Theo CNBC, Reuters)