WASHINGTON/SINGAPORE, May 7 (Reuters) - The U.S. has
revoked licenses that allowed companies including Intel ( INTC )
and Qualcomm ( QCOM ) to ship chips used for laptops and
handsets to sanctioned Chinese telecoms equipment maker Huawei
Technologies, three people familiar with the matter said.
A fourth person said some of the companies were notified on
Tuesday that their licenses were revoked effective immediately.
The U.S. Commerce Department earlier in the day confirmed it had
revoked some licenses but stopped short of naming the companies.
A spokesperson for Intel ( INTC ) declined to comment. Qualcomm ( QCOM ) did
not respond to a request for comment and Huawei did not
immediately respond.
The move comes after the release last month of Huawei's
first AI-enabled laptop, the MateBook X Pro powered by Intel's ( INTC )
new Core Ultra 9 processor.
The laptop launch drew fire from Republican lawmakers, who
said it suggested to them that the Commerce Department had given
the green light to Intel ( INTC ) to sell the chip to Huawei.
"We have revoked certain licenses for exports to Huawei,"
the Commerce Department said in a statement, declining to
specify which ones it had withdrawn.
The Commerce Department's move, first reported by Reuters,
comes after concerted pressure by Republican China hawks in
Congress who have been urging the Biden administration to take
tougher action to thwart Huawei.
"This action will bolster U.S. national security, protect
American ingenuity, and diminish Communist China's ability to
advance its technology," Republican Congresswoman Elise Stefanik
said in a statement.
The move could hurt Huawei which still relies on Intel ( INTC ) chips
to power its laptops, and could hurt U.S. suppliers that do
business with the company.
Intel ( INTC ) has also been facing weak demand for its traditional
data center and PC chips. Last month, it lost $11 billion in
stock market value after forecasting second-quarter revenue and
profit below market estimates.
Huawei was placed on a U.S. trade restriction list in 2019
amid fears it could spy on Americans, part of a broader effort
to handicap China's ability to bolster its military. Being added
to the list means the company's suppliers have to seek a
special, difficult-to-obtain license before shipping.
Even so, suppliers to Huawei have received licenses worth
billions of dollars to sell Huawei goods and technology,
including one particularly controversial authorization, issued
by the Trump administration, which has allowed Intel ( INTC ) to ship
central processors to Huawei for use in its laptops since 2020.
Qualcomm ( QCOM ) has sold older 4G chips to handsets since receiving
a license from U.S. officials in 2020. In regulatory filing
earlier this month, Qualcomm ( QCOM ) had said it did not expect to
receive more chip revenue from Huawei beyond this year.
However, Qualcomm ( QCOM ) still licenses its portfolio of 5G
technologies to Huawei, which last year began using a 5G chip
designed by its HiSilicon unit that most analysts believe is
manufactured in violation of U.S. sanctions. Qualcomm ( QCOM ) said in
the filing this month that its patent deal with Huawei expires
early in Qualcomm's ( QCOM ) fiscal 2025 and that it has started
negotiations to renew the deal.
Critics argue such licenses have contributed to the
company's resurgence. Huawei shocked industry last August with a
new phone powered by a sophisticated chip manufactured by
Chinese chipmaker SMIC, despite U.S. export
restrictions on both companies.
The phone helped Huawei smartphone sales spike 64% year on
year in the first six weeks of 2024, according to research firm
Counterpoint. Its smart car component business has also
contributed to Huawei's resurgence, with the company notching
its fastest revenue growth in four years in 2023.
(Reporting by Alexandra Alper, David Shepardson, Karen
Freifeld, Stephen Nellis, Chris Sanders and Fanny Potkin;
Additional reporting by David Kirton; Editing by Daniel Wallis
and Lincoln Feast.)