Cancellation of Intel and Qualcomm licenses to sell chips to Huawei:
The United States has canceled the licenses that allowed Huawei Technologies
to purchase semiconductors from Intel and Qualcomm,
according to those familiar with the matter,
enhancing the tightening of export restrictions against the Chinese telecommunications equipment manufacturer
Content:
Impact of license Cancellation
Intel and Qualcomm stock movements
Pressures to cancel licenses
The Alleged Chip
Impact of License Cancellation
The License Cancellation of Intel and Qualcomm affects U.S. sales of chips used in Huawei phones and laptops,
according to people who discussed the move on condition of anonymity.
Michael McCaul, the House Foreign Affairs Committee chairman,
confirmed the decision during an interview last Tuesday,
indicating that this step is necessary to prevent China from developing advanced artificial intelligence.
McCaul, a Republican from Texas who was briefed on the licensing decisions
for Intel and Qualcomm, stated:
“The decisions prevent the sale of any chips to Huawei.”
He added, “These companies are always a concern due to their closeness to China.”
The U.S. Department of Commerce confirmed the withdrawal
of “certain licenses” for exports to Huawei but declined to provide details.
The department stated on Tuesday: “We continuously assess how our controls can
better protect our national security and foreign policy interests.”
Intel and Qualcomm Stock Movements
Qualcomm’s shares fell 0.9% to $180.15 after a Financial Times report earlier in the day about the license cancellation.
Intel’s stock remained unchanged at $30.68.
Qualcomm recently noted that its business dealings with Huawei
are already limited and will soon be reduced to nothing.
Only chips that provide 4G network connectivity were allowed
to be supplied to the Chinese company while selling products
that enable access to the 5G network was prohibited.
According to a Bloomberg supply chain analysis,
Huawei is not among Qualcomm’s top 10 customers or on Intel’s top customer list.
US Efforts to Limit China’s Access to Semiconductor Technology
This decision is part of ongoing U.S. efforts to limit China’s access to semiconductor technology.
U.S. officials are also considering imposing sanctions
on six Chinese companies suspected of being able to supply chips to Huawei,
which has been on the U.S. trade restriction list since 2019.
The United States is also pressuring its allies, including Japan,
the Netherlands, South Korea, and Germany,
to tighten restrictions on the sale and maintenance of chip manufacturing equipment in China.
Huawei is a primary target of these moves.
Pressures to Cancel Licenses
McCaul and other Republican legislators,
including House Republican Conference Chair Elise Stefanik and Senator Marco Rubio,
have urged the Commerce Department to cancel the licenses for companies that sell chips to Huawei.
Their calls intensified after the company unveiled
a smartphone powered by an advanced processor made in China
during Commerce Secretary Gina Raimondo’s visit to China in August.
The Alleged Chip
The Biden administration opened an investigation into the alleged 7-nanometer chip,
which a Bloomberg analysis revealed was manufactured by Semiconductor Manufacturing International Corp.
An official earlier this year said the company might have violated U.S. law if it supplied Huawei with that chip.
Bloomberg reported that the chip was manufactured using Dutch and American technology.
This indicates that China still relies on foreign tools to
produce the most advanced semiconductors despite Beijing’s efforts to build a complete local supply chain.
Cancellation of Intel and Qualcomm licenses to sell chips to Huawei