The U.S. government has revoked several licenses that allowed American chip companies to export semiconductors to Huawei, reflecting an ongoing effort by the Biden administration to limit the Chinese tech company’s access to key technologies.
The Commerce Department (via CNBC ) said it is constantly reviewing how export controls can protect national security and how the geopolitical landscape and technology industry are evolving. As part of this review, the US revoked certain licenses to sell chips and related technologies to Huawei.
While the Commerce Department did not specify which licenses or companies were affected, this is the latest move by the Biden administration to crack down on Huawei.
As part of this process, as we have done in the past, we sometimes deny export licenses. But we can confirm that we have denied certain export licenses to Huawei
It also comes after former President Trump put Huawei on a trade blacklist in 2019, citing security concerns. That blacklist prohibited US companies from selling technology, such as 5G network equipment, to Huawei without proper approval.
In 2020, the U.S. tightened those restrictions by requiring foreign companies that use U.S. manufacturing equipment to obtain a license before exporting semiconductors to Huawei. Now, by revoking some previous licenses, the administration is signaling that it doesn’t want Huawei to even have access to supplies. This will put additional pressure on the Chinese technology company, which has developed its own chips in response to the sanctions but still relies on foreign suppliers for some components.
The revocation of the license will also affect the chip manufacturers that supply Huawei. Companies such as Intel and Qualcomm, which still sell some chips to Huawei under license, have warned that their revenues could take a bigger hit as Huawei ramps up domestic production and captures more of the domestic Chinese market with standalone devices.
On the other hand, Apple witnessed a substantial drop in iPhone shipments in China, with a 33% drop in February from the previous year. The company’s struggle began with Huawei’s resurgence in premium smartphones like the Mate 60 Pro.