The US revokes the licenses of some big tech companies for supplying chips to Huawei

The US revokes the licenses of some big tech companies for supplying chips to Huawei
The US revokes the licenses of some big tech companies for supplying chips to Huawei
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Some of the companies were notified on Tuesday that their licenses had been revoked with immediate effect. The US Department of Commerce said on Wednesday that it had revoked some licenses, but did not name the companies, Reuters reports.

The decision follows last month’s launch of Huawei’s first AI laptop, the MateBook X Pro, equipped with Intel’s new Core Ultra 9 processor.

The laptop’s launch drew criticism from Republican lawmakers, who said it suggested the Commerce Department had given Intel the green light to sell the chip to Huawei.

“We have revoked certain licenses for exports to Huawei,” the Commerce Department said, declining to specify which ones had been revoked.

The move could hurt Huawei, which still relies on Intel chips to power its laptops, and hurt US suppliers that do business with the company.

Intel is also facing weak demand for its chips for data centers and PCs. Last month, it lost $11 billion in market value after forecasting second-quarter revenue and profit below market estimates.

Huawei was placed on a US trade restriction list in 2019 amid fears it could spy on US citizens through its technology.

This listing will require the company’s suppliers to apply for a special, difficult-to-obtain license before delivering the products.

Even so, Huawei suppliers have received billions of dollars worth of licenses to sell Huawei goods and technology, including a particularly controversial authorization issued by the Trump administration that allowed Intel to ship CPUs to Huawei for use in its laptops starting in 2020.

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Tags: revokes licenses big tech companies supplying chips Huawei

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