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The Trump administration is adopting stricter policies that will make it even more difficult for Huawei to do business with US-based companies.
According to Reuters, the Trump administration has informed vendors, including chipmaker Intel, that it is revoking certain licenses to sell to Huawei. The Trump administration has also revealed its intention to reject dozens of other sourcing requests from the Chinese company.
In 2019, the US Department of Commerce placed Huawei and its subsidiaries on the “entity list,” preventing many US companies from doing business with the Chinese company. One of the companies affected by the move was chipmaker Intel, although in late September the Commerce Department licensed Intel to supply certain products to Huawei. Now, however, that license has been revoked.
Huawei still makes laptops – just a few days ago the company announced the 2021 MateBook X Pro and 2021 MateBook 13/14 – so the latest restriction could potentially hurt the company’s ability to manufacture new PCs. Before today, restrictions imposed by the Trump administration were already making it difficult for Huawei to do business. The latest development makes Huawei’s future more uncertain than ever.
Earlier restrictions effectively prevented most chipmakers from supplying Huawei, preventing the company from having its ARM-based SoC designs manufactured by contracted chipmakers like TSMC. As a result, the Huawei Mate 40 series Kirin 9000 is expected to be the company’s latest self-designed high-end Kirin silicon, and the company will have to look to 4G chipsets from competitors like Qualcomm or hope that semi-manufacturing. conductors in China industry may intensify.
In recent months, Huawei has taken steps to reduce its reliance on US-based companies. In November, the company announced that it was selling Honor, a smartphone brand owned by the Huawei Consumer Business Group, to a consortium of more than 30 agents and resellers. The injection of liquidity could allow the company to become completely independent.
Today’s news comes just days before President Trump ends his term, with President-elect Joe Biden set to take power. When Trump is no longer president, it remains to be seen whether this restriction and others will be lifted.
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