Intel and Qualcomm’s License Revocation: US Cracks Down on Huawei Technologies’ Chip Supply

The US has revoked Intel and Qualcomm’s licenses to sell laptop chips and handheld devices to Huawei Technologies, according to Reuters. On May 7, the US Department of Commerce confirmed that it had revoked a number of export licenses but did not name the companies. “We have revoked a number of export licenses for Huawei,” the US Department of Commerce said in a statement, declining to specify which licenses were revoked.

Intel’s capitalization evaporated by $11 billion last 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, making it difficult for suppliers to do business with them without a special license from the US. Over the years, American companies have still received licenses to sell billions of dollars in goods and technology to Huawei. However, this move may harm Huawei because they still rely on Intel chips for laptops. American suppliers doing business with this company also suffered losses.

Qualcomm has a license to sell older generation 4G chips to Huawei in 2020 but is not licensed to do business in 5G technology with them anymore. In August 2023, the company caused a stir when they launched a new phone equipped with a sophisticated chip produced by Chinese chip manufacturer SMIC despite US export restrictions. This move could contribute to Huawei’s resurgence as they continue to find ways around these restrictions through partnerships with other countries and companies.