Last Tuesday, the U.S. announced the cancellation of Huawei chips’ licenses for export to China. Through these licenses, U.S. chip makers sell their goods to the tech Chinese giant” Huawei.” Michael McCaul and the U.S. chairman of FAC in the House reserved these supply licenses. The U.S. Department of Commerce tells CNBC that it has cancelled some licenses for the chip supply to stop the Chinese tech giant Huawei. Huawei held this cancellation after an AI-enabled power-launched laptop that worked through the IntelCore UltraProo 9 processor chip.
The Department of Commerce speaker said,” We keep an eye on the continuously changing environment in the tech world. This could help us take action to maintain and protect our national security and foreign policy. We also perform this license cancellation process to maintain landscape protection since 2019, when the tech giant Huawei was added to the U.S. traded blacklist, which was banned from selling 5G chips technology to the Chinese tech company. They banned it because it was a privacy concern for the national security of American firms. These chip-selling restrictions on Huawei make it essential for those companies to obtain licenses using U.S. chipmaking tools and machines first if they want to sell the microprocessor chip to Huawei.
Most lawmakers and businesses who purchase Huawei criticized the U.S. president after Huawei launched the MateBook X Pro laptop last August. Huawei laptops also criticized those who proposed selling the green light to Intel to Huawei. In one post on social media, Elise Stefanik said, ” If the Biden administration does not do this, they don’t have to answer the republic conference. The Chinese tech giant Huawei Mate 60 smartphone benefits after launching the latest SMIC. These actions can impact Huawei, which relies on Intel chips to power its laptops, and the American suppliers who work with these companies.
Read Also: Tech Giant Huawei’s First-Quarter Profit Surged 564% to Bite into Competitor Apple’s Sales in China.
In one statement, the Chinese Ministry of Foreign Affairs said that China has to suppress the companies to control the wrong usage of exports to protect its national security from America. There are two Huawei chip supply companies: Qualcomm and Intel. Qualcomm sold old 4G chips after receiving a license in 2020 from the United States. They also said at the start of the month in an SEC filing that it is not expected to generate much revenue from Huawei’s development of chips in 2025.
Qualcomm also said that Huawei takes shares from the Chinese equipment that uses Huawei 5G devices to build 5 G products and sells them to China from non-Chinese OEMs. This can impact and disturb our revenues and affect our cash flow.
Along with the U.S. export restrictions on Huawei from both companies, the surprise industry worked by China’s latest chip maker with a new phone. In February 2024, according to counterpoint firm research, the smartphone helped Huawei increase sales by up to more than 60%. The smart car tools also played important roles in Huawei’s re-emergence, helping it grow its revenues quickly.
