The US Department of Commerce has revoked licenses for the supply of some Intel and Qualcomm products to the Chinese corporation Huawei, the British online technology publication The Register reported on May 8.
The US Department of Commerce made a statement regarding the license revocation on May 8. Details have not yet been revealed, but it is claimed that the move will affect Huawei’s supply of Intel and Qualcomm processors.
The department’s action is reportedly prompted by a lawsuit from some Republican Party U.S. senators. In particular, this is related to the demands of the Chairman of the House Foreign Affairs Committee, Michael McCaul, the Chair of the House Republican Conference, Elise Stefanik, and Senator Marco Rubio.
Rubio said on his Twitter page on May 7 that the right decision was made, but that the licenses should not have been granted in the first place. The Republicans’ actions are related to the fact that Huawei laptops were launched with the latest Intel Core i9 processors.
Additionally, the Chinese corporation had licenses to purchase Qualcomm chips for its cellular-enabled smartphones up to the 4G generation. Following previous US sanctions packages, Huawei’s revenue fell sharply, but for the first quarter of 2024, the company reported a 564% increase in its net profit compared to the same period in 2023.
At the moment, the company expects to receive revenues of between 12.5 and 13.5 billion dollars in the second quarter. Overall, revenue for 2024 is expected to increase compared to last year.
Source: Rossa Primavera
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