Huawei Trump
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US Cancels Licenses Of Intel To Supply Chips To Huawei

Just when things were finally lining up for Huawei, the Chinese multinational tech company has been dealt with another major blow by President Donald Trump’s administration in the United States.

The Trump administration has notified Huawei that it is overruling some licenses granted to its suppliers such as Intel, but that’s not all. The outgoing administration has also informed the company that it plans to reject a myriad of applications for licenses to supply components and services to Huawei, according to Reuters.

This is part of the United States’ attempt to weaken one of the world’s largest telecommunication equipment maker, describing it as a national security threat since it is headquartered in Shenzhen, China. In an email to Reuters, Semiconductor Industry Association noted that the Commerce Department had issued “intents to deny a significant number of license requests for exports to Huawei and a revocation of at least one previously issued license.”

Sources familiar with the development, however, claim that the United States has revoked as many as eight licenses from four companies. Aside from Intel, Japan-based flash memory chip maker Kioxia Corp’s license has also been reportedly yanked.

The companies that received the “intent to deny” notices had 20 days to respond, while the Commerce Department has 45 days to suggest any changes in a decision before it becomes final. After that, companies will have another 45 days window to request that the decision in their case be looked at again.

After over a year of restrictions, America had finally started issuing licenses to companies for starting supplies to Huawei, provided the components had nothing to do with the development of 5G technology. Just months after that, the U.S. government is withdrawing from that as well, causing companies tied-up between this trade war to lose a considerable amount of money.

Vinay Patel

Vinay Patel

Vinay is a proactive writer with over 8 years of experience in writing original and high-quality content.

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