HUAWEI dealt another blow by US government that could cripple its PC business
Ever since the US government put HUAWEI on the entity list as well as the defense department’s military blacklist, the company has suffered a number of setbacks. Aside from shrinking market share, getting alienated from the offering a true-blue Android experience on its phones (prompting the company to work on its own app repository and operating system), and getting its chip supply chocked, it appears that the company’s PC business is now in the red zone. The US government has told key HUAWEI suppliers – one of which happens to be Intel – that their trade license with the Chinese company has been revoked.
“The Trump administration notified Huawei suppliers, including chipmaker Intel, that it is revoking certain licenses to sell to the Chinese company and intends to reject dozens of other applications to supply the telecommunications firm,” said a Reuters report. “Sources familiar with the situation, who spoke on condition of anonymity, said there was more than one revocation. One of the sources said eight licenses were yanked from four companies.”
When HUAWEI was first placed on the entity list, Intel was among the companies that received a license to supply its processors, among other equipment, to the Chinese company. But with the US government now sending notices to companies regarding its latest move, it appears that HUAWEI’s access to chips that go inside its laptop range is getting cut off for the foreseeable future. As per the report, a total of eight trade licenses granted to four US companies were revoked by the US government in its latest sweeping move.
Aside from Intel, Kioxia Corp – previously known as Toshiba Memory Corp – also had its license canceled. The notice sent by the US government reportedly includes a broad range of products in the semiconductor industry, and not just processors powering laptops. “Before the latest action, some 150 licenses were pending for $120 billion worth of goods and technology, which had been held up because various U.S. agencies could not agree on whether they should be granted, a person familiar with the matter said,” the report adds.
HUAWEI, which has been put on the entity list citing national security risk and on the military blacklist over its alleged ties with the Chinese military, has seen its supply of 5G telecom equipment and semiconductor technology choked in the wake of the US government’s crackdown. It is being speculated that the Chinese company likely won’t be able to make an in-house flagship Kirin chip after the upcoming Kirin 9000 SoC that debuts later this year, primarily due to suppliers pulling away.
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