US government revokes licences for firms exporting chips to Huawei

Wed 8 May 2024
Posted by: Benjamin Roche
Trade News
semiconductor

The US government has revoked the licences of some computer chip manufacturers to export specific goods to China for use by tech firm Huawei.

US chip giants Intel and Qualcomm have been restricted from exporting semiconductors for use in laptops or phones made by the Chinese firm, according to a report by the FT.

A US commerce department spokesperson told the publication:

“We continuously assess how our controls can best protect our national security and foreign policy interests, taking into consideration a constantly changing threat environment and technological landscape. As part of this process, as we have done in the past, we sometimes revoke export licences.”

New measures

The new measures mark increased pressure from the US government on Huawei, which it has targeted before over security fears raised by intelligence officials.

These restrictions come in the wake of the launch of Huawei’s new MateBook X Pro laptop in the US, and calls from Republican Party figures for harsher action against the firm, according to the BBC.

Some in the US have been alarmed by the increasing sophistication of Huawei’s chips. Republican politicians, including the vice-chair of the Senate intelligence committee, Marco Rubio, called for the revoking of licences in a letter last month:

“It is clear from these trends that Huawei, a blacklisted company that was on the ropes just a few years ago, is making a comeback.”

AI-powered measures

Samantha Hodgkins, customs consultant at the Institute of Export & International Trade (IOE&IT), noted that “different countries will have different sanctions and controls in place, for a number of reasons, some of these can be for security, some to support the economy of their particular country.”

She said it was “interesting” that the new measures came into effect so soon after the announcement of the MateBook X Pro, Huawei’s first AI-enabled laptop, which is powered by an Intel processor.

Hodgkins added that it would be particularly interesting “to see whether these sanctions are supported and adopted by the UK”.

‘Significant action’

The firm was added to the US ‘entity list’ in 2019, requiring exporting companies to apply to the government for a licence to trade specific technologies.

Export control expert Meghan Harris of Beacon Global Strategies told the FT:

“This is a significant action that indicates how seriously the US government is approaching – and not backing down from – what it views as national security threats from Chinese technology.

“To the extent industry and foreign partners were watching to see whether the administration would soften its stance, this is a clear indicator that it will not – and we should anticipate any subsequent administration to continue on course.”