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Summary
- The Trump administration informed the suppliers of Huawei, including Intel, that it is withdrawing specific licenses to sell to the tech player.
- The notice comes during the final days of Trump administration.
- The decision was made after several meetings were conducted with senior officials belonging to the Dept of Commerce, State, Defense and Energy.
The Trump administration has informed Huawei suppliers and Intel that is cancelling some permits to sell to the Chinese firm. It further aims to reject several other applications to supply the telecommunication company.
The step taken by the Trump administration against Huawei Technologies is to weaken the largest maker of telecom equipment in the world, which is regarded as the threat to the US national security and foreign policy interest.
Intel was amongst those small set of businesses who could deal with Huawei. The step was taken by the Trump administration, which had placed Huawei on its entity list of national security threat during May 2019. The Trump administration sanctions have ended Huawei’s business relationship with Google, provider of android to multiple Huawei smartphones and leading-edge chips to Taiwan Semiconductor Manufacturing Co.
Trump admin revokes licenses Huawei’s suppliers (Image Source: Shutterstock)
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According to Reuters, as per an email detailing the activities, the Semiconductor Industry Association on Friday stated that the Commerce Department had issued the intent to eliminate several permit applications for exports to Huawei and the cancellation of at least an earlier issued permit. As per the sources, there were eight licenses which were pulled from four organizations. One of them - Kioxia Corp (earlier known as Toshiba Memory Corp) is a Japanese flash memory chip maker with at least one license withdrawn.
Before this decision, nearly 150 licenses were pending worth US$120 billion of goods & technology. These were held up as several US could not decide to grant or not grant the license.
There is another license for good and technology for Huawei that is still not dealt with (worth US$280 billion). However, Reuter’s sources said that there is a possibility that it would also get rejected.
As per the rule passed in August 2020, all the products with 5G capabilities would be rejected. However, in the case of less sophisticated technology, the decision would depend on each case.
The Trump administration took the decision after several meetings conducted with the senior officials belonging to the Dept of Commerce, State, Defense and Energy. The officials had prepared comprehensive guidance that pointed out the technologies capable of 5G. With this, the officials rejected nearly 150 disputed applications. A further eight licenses were revoked to make it in line with the recent denials.
