Intel, Qualcomm confirm immediate US ban on chip sales to Huawei
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The US Department of Commerce has revoked licenses granted to Intel and Qualcomm to supply certain chips to Huawei Technologies Co. Ltd. (Shenzhen, China) with effect from May 7.
Intel and Qualcomm confirmed the revocations in filings to the Securities and Exchange Commission.
Huawei was denied access to a number of leading-edge technologies since 2019 under US export controls that discussed problems of dual-use technology that could be used by the People’s Liberation Army. At the same time the Department of Commerce had granted licenses for the supply of chips that were at the time deemed to be below a performance threshold that made them non-critical. On that basis items related to 5G communications were not licensed but 4G were.
Intel filed: “On May 7, 2024, the US Department of Commerce informed Intel Corp. that it was revoking certain licenses for exports of consumer-related items to a customer in China, effective immediately. As a result, the company expects revenue for the second quarter of 2024 to remain in the original range of US$12.5 billion to US$13.5 billion, but below the midpoint. For full year 2024, the company continues to expect revenue and earnings per share to grow year-over-year compared to 2023.”
Similarly, Qualcomm has filed: “On May 7, 2024, the US Department of Commerce informed Qualcomm Inc. that it was revoking the company’s license to export 4G and certain other integrated circuit products, including Wi-Fi products, to Huawei Device Co., Ltd. and its affiliates and subsidiaries, effective immediately. As disclosed in our Form 10-Q filed on May 1, 2024, we did not expect to receive product revenues from Huawei beyond the current calendar year. This revocation has moved that date to May 7, 2024, as we implemented measures to immediately comply.”
Huawei’s sales into the smartphone sector collapsed in the wake of an initial ban of leading-edge application processors but the company appears to be rebounding in 2024 and to have achieved some success working with local foundry SMIC to make processors on a near-7nm manufacturing process.
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