Huawei Faces More Challenges as US Revokes Licenses for 4G Chips Supplies

The US government has revoked licenses for companies like Intel and Qualcomm to supply 4G chips for laptops and cellphones to Chinese telecommunications equipment maker Huawei Technologies, according to three sources. The Ministry of Trade confirmed the withdrawal of certain export licenses to Huawei without specifying which ones were involved. This move follows Huawei being added to a US list of trade restrictions in 2019 amid concerns about technology being used for espionage and military strength.

The withdrawal of licenses could pose challenges for both Huawei and American suppliers. Intel has been facing weak demand for its chips, and Qualcomm, which sold older 4G mobile chips to Huawei under a 2020 license, does not expect revenue from chip sales to the Chinese company starting next year. The agreement on patent rights governing the use of Qualcomm’s 5G technologies with Huawei is set to expire in 2025, with discussions ongoing for a possible extension.

Huawei’s recent launch of its first artificial intelligence notebook, the MateBook X Pro powered by Intel’s new Core Ultra 9 processor, preceded the withdrawal of licenses. The decision by the Department of Commerce has been hailed by some as a move to strengthen national security, protect American innovation, and limit China’s technological capabilities.

Critics argue that the permits allowed Huawei to recover from the impact of American sanctions, especially following the launch of a new phone with a sophisticated chip from a Chinese manufacturer. Despite the challenges, Huawei’s sales surged in the first six weeks of this year, demonstrating their resilience in the face of restrictions and licensing changes.