On May 7, the US Department of Commerce confirmed that it had revoked a number of export licenses for Huawei Technologies, including those granted to Intel and Qualcomm to sell laptop chips and handheld devices. This move comes after Huawei launched its first AI-powered laptop MateBook X Pro, powered by Intel’s new Core Ultra 9 processor, last month.
Republican lawmakers have criticized the US Department of Commerce for giving the green light for Intel to sell chips to Huawei. An Intel spokesman declined to comment, while Qualcomm and Huawei did not respond to Reuters. Republican congresswoman Elise Stefanik declared her support for the action, stating that it will strengthen national security, protect American innovation and reduce China’s ability to develop technology.
Intel is facing weak demand for its chips for data centers and PCs, with its capitalization evaporating by $11 billion in one month after forecasting second-quarter revenue and profits were lower than expectations. Huawei was placed on the US trade restrictions list in 2019 for security reasons and needs a special license from the US to trade with suppliers like Intel. Over the years, American companies have still received licenses to sell billions of dollars in goods and technology to Huawei. However, this controversial license issued by the Trump administration approving Intel to supply central processors to Huawei for use in laptops starting in 2020 has been particularly contentious.
Qualcomm has a license to sell older generation 4G chips to Huawei in 2020 but did not expect additional chip revenue from this company after this year. The company is still licensed to do business with Huawei in 5G technology but is beginning negotiations to extend its patent agreement with the company, which will expire in Qualcomm’s fiscal year 2025. Critics argue that such licenses have contributed significantly to Huawei’s resurgence in recent years. In August 2023, the company caused a stir when it launched a new phone equipped with a sophisticated chip produced by Chinese chip manufacturer SMIC despite US export restrictions. According to research company Counterpoint, this phone helped boost smartphone sales for Huawei by 64% compared