USA revokes licenses of Intel and others to supply chips to Huawei


Just when it seemed that things are finally lining up for Huawei, the company has been dealt with another major blow by the Trump administration in the United States. As per the report from Reuters, the Trump administration has notified the Chinese giant that it is revoking certain licenses granted to its suppliers, including Intel.

It doesn’t stop just there. On top of that, it has also informed Huawei that the administration is planning to reject dozens of applications for licenses to supply components and services to Huawei.

This is yet another attempt by the United States to weaken the world’s largest telecommunication equipment maker which it sees as a national security threat because of its origin and base in China.

In an email to Reuters, Semiconductor Industry Association said that the Commerce Department had issued “intents to deny a significant number of license requests for exports to Huawei and a revocation of at least one previously issued license.”

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However, sources aware of the development claims that as many as eight licenses from four companies have been revoked by the United States. It is also said that along with Intel, Japan-based flash memory chip maker Kioxia Corp’s license has also been yanked.

It seems that companies that received the “intent to deny” notices have 20 days to respond, and the Commerce Department has 45 days to advise them of any change in a decision, otherwise it becomes final. After that, Companies would have another 45 days window to appeal that decision.

After more than a year of restrictions, the United States had finally started issuing licenses to companies for commencing supplies to Huawei as long as the components were not related to the development of 5G technology. And now just months after that, the U.S. government is backing out from that as well, incurring hundreds of billions of losses for companies tied-up between this trade war.

 

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