BERLIN, GERMANY – SEPTEMBER 03: People arrive to attend Huawei’s keynote speech at the IFA 2020 Special Edition consumer electronics and home appliances trade show on the opening day of the show on September 03, 2020 in Berlin, Germany. The fair is taking place despite the current coronavirus pandemic, but in a reduced form and without personal access for the general public. The IFA 2020 special edition will take place from September 3 to 5. (Photo by Sean Gallup/Getty Images)
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The United States has revoked some chip export licenses to Chinese tech giant Huawei, the Commerce Department told CNBC on Tuesday, in its latest efforts to rein in China’s technological might.
“We continually evaluate how our controls can best protect our national security and foreign policy interests, taking into account an ever-changing threat environment and technology landscape,” a spokesperson said. Trade in a press release.
“As part of this process, as we have done in the past, we sometimes revoke export licenses,” the spokesperson said, declining to comment on specific licenses. “But we can confirm that we have revoked some export licenses to Huawei.”
Huawei was placed on a US trade blacklist in 2019, which banned US companies from selling technology – including 5G chips – to the Chinese tech giant over national security concerns. In 2020, the United States tightened chip restrictions on Huawei, requiring foreign manufacturers using American chipmaking equipment to obtain a license before they could sell semiconductors to Huawei.
Huawei’s consumer business, which includes smartphones and laptops, is seeing a resurgence following the launch of the Mate 60 Pro smartphone in August.
A TechInsights analysis of Huawei’s Mate 60 Pro smartphone has revealed an advanced chip made by leading Chinese chipmaker SMIC. The smartphone would also come with 5G connectivity – a feature that US sanctions sought to block.
American chip companies Qualcomm And Intel are two of the companies that supply chips to Huawei. Qualcomm, in an SEC filing earlier this month, said it expects its operations to be “further impacted” by its customers, such as Huawei, developing their own chips.
“Although we have continued to sell integrated circuit products to Huawei under our licenses, we do not anticipate product revenue from Huawei beyond the current calendar year,” Qualcomm said.
“Additionally, to the extent that Huawei’s 5G devices take share from Chinese original equipment manufacturers who use our 5G products or from non-Chinese OEMs who use our 5G products in the devices they sell in China, our revenues, operating results and cash flows could be further impacted,” Qualcomm said.
Last month, Huawei launched a new range of phones – the Pura 70 series – in a bid to challenge Apple in China.
Apple faces pressure from Huawei in China as iPhone sales plunged 19.1% in the first quarter while Huawei’s smartphone sales soared 69.7%, according to Counterpoint Research.
Huawei’s 2023 net profit rose 144.5% from last year to 87 billion yuan (about $12 billion), partly helped by sales of the Mate 60 Pro in China, revealed the company in March.
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