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Chipmakers Intel, Qualcomm suffer blow as US revokes Huawei export licences | Scoop
Despite Huawei's strong denials of espionage, the US continues to tighten trade restrictions, affecting suppliers such as Intel and Qualcomm, with the Commerce Department citing national security concerns in its decision to revoke certain export licences. – Wikipedia pic, May 9, 2024
News

Chipmakers Intel, Qualcomm suffer blow as US revokes Huawei export licences

Move comes amid continued tensions between Washington and Huawei, with the US accusing the Chinese telecom equipment maker of espionage

Scoop Reporters
Updated
10:51 AM MYT

 

KUALA LUMPUR – Chip giants Intel and Qualcomm are among those hit after the US Commerce Department revoked certain export licences that allowed companies to supply Chinese telecom equipment maker Huawei.

Over the years, Huawei has been caught in a series of accusations by Washington that the company is being used by Beijing to conduct espionage, even though the company has repeatedly denied doing so. 

“We continuously assess how our controls can best protect our national security and foreign policy interests, taking into consideration a constantly changing threat environment and technological landscape,” a Commerce Department spokesperson told AFP.

“We are not commenting on any specific licences, but we can confirm that we have revoked certain licences for exports to Huawei.”

In response, a Chinese Commerce Ministry spokesperson said China “will take all necessary measures to firmly safeguard the legitimate rights and interests of Chinese firms”.

The spokesperson added that China “firmly opposes” the move by the US and the trade restrictions are a form of “economic coercion”.

This came after Republican lawmakers urged President Joe Biden’s administration to block all export licences to Huawei after the company launched the AI-enabled laptop, the MateBook X Pro, powered by Intel’s new Core Ultra 9 processor.

Intel warned that sales will take a hit following the licence revocation. As it is, Intel shares have lost almost 38% in value this year.

Qualcomm confirmed the revocation, saying it will comply with all applicable export control regulations.

Huawei was placed on the US trade restrictions list in 2019, forcing its suppliers to obtain special and difficult-to-obtain licences before shipping. – May 9, 2024

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