Just two days before the end of his term as President of the United States, Donald Trump has once again hit the Chinese manufacturer of smartphones and communications equipment, Huawei. The authorities have notified US component suppliers such as Intel that they will revoke certain licenses through which they can work with Huawei and that they will revoke more licenses from other companies in the coming days.
According to the information he published ReutersThere are already rumors of a number of registered licenses that will be denied by the authorities, while at least eight licenses already approved after this decision will be revoked.
Intel and other companies are losing their licenses to work with Huawei
In addition to Intel, which supplies Huawei with wireless network processors and chips for its laptop lineup, other chip vendors such as Kioxia Corp. will remain. , Former Toshiba Memory Corp., without licenses.
Companies that do not receive a positive response to the license application will have 20 days to respond, while the authorities will respond to identified violations in another 45 days before the response is deemed final. Thus the companies will have another 45 days to challenge the decision. Thus, the process can last for several months, during which time they cannot deal with Huawei, and Huawei is left without the components they wish to purchase.
The recent ban against Huawei only restricted the sale of the company’s 5G technologies, so Qualcomm could not offer Huawei’s new generation processors that integrate such modems. However, other chipsets with 4G modems have been accepted.
Given the current situation and the complex bureaucracy surrounding it, there is little chance that the situation will be resolved quickly, even after Joe Biden takes office as President of the United States on Wednesday, January 20. That is, assuming Biden would have a different attitude toward China. There is a possibility that it will continue to restrict Huawei and other Chinese companies.