The US has revoked Huawei Technologies’ license to sell laptop chips and handheld devices, according to Reuters. This move comes after the company launched its first AI-powered laptop MateBook X Pro, powered by Intel’s new Core Ultra 9 processor, last month.
The US Department of Commerce confirmed that it had revoked a number of export licenses but did not name the companies. However, four separate sources from Reuters revealed that these are licenses granted to Intel and Qualcomm to sell laptop chips and handheld devices to Huawei.
The move is likely to harm Huawei because it still relies on Intel chips for laptops. At the same time, American suppliers doing business with this company also suffered losses. This action will strengthen national security, protect American innovation and reduce China’s ability to develop technology, said Republican congressman Elise Stefanik.
Intel is facing weak demand for its chips for data centers and PCs. Last month, Intel’s capitalization evaporated by $11 billion, after forecasting second-quarter revenue and profits were lower than expectations. Qualcomm has a license to sell older generation 4G chips to Huawei in 2020 but not any additional chip revenue from Huawei after this year. However, Qualcomm is still licensed to do business in 5G technology with Huawei. Critics say such licenses have contributed to Huawei’s resurgence in the smartphone market despite US export restrictions.
