BERLIN, GERMANY – SEPTEMBER 3: People arrive for the Huawei keynote speech on the opening day of the IFA 2020 Special Edition consumer electronics and home appliances trade fair in Berlin, Germany on September 3, 2020. Despite the ongoing coronavirus pandemic, the show is still going ahead as scheduled, albeit in a scaled-down format and closed to the public. The special edition of IFA 2020 will take place from September 3rd to 5th. (Photo by Sean Gallup/Getty Images)
Sean Gallup | Getty Images News | Getty Images
The U.S. Department of Commerce told CNBC on Tuesday that the United States has revoked licenses to export certain chips to Chinese technology giant Huawei, the latest step to curb China’s technological power.
“Given the evolving threat environment and technology landscape, we continually evaluate how our controls best protect our national security and foreign policy interests,” a Commerce Department spokesperson said in a statement.
“As part of this process, and as we have done in the past, we sometimes revoke export licenses,” the spokesman said, declining to comment on specific licenses. “But we can confirm that we have revoked certain licenses for exports to Huawei.”
Huawei was placed on a U.S. trade blacklist in 2019, which prohibits U.S. companies from selling technology, including 5G chips, to the Chinese technology giant due to national security concerns. In 2020, the United States tightened chip restrictions on Huawei, requiring foreign manufacturers that use U.S. chip manufacturing equipment to obtain a license before selling semiconductors to Huawei.
Huawei’s consumer business, including smartphones and laptops, is launching Mate 60 Pro smartphone in August.
A Technical Insights Analysis of Huawei’s Mate 60 Pro smartphone reveals advanced chips made by China’s top chipmaker SMIC. The smartphone is also said to come with 5G connectivity, something that US sanctions have tried to block.
American Chip Corporation Qualcomm and Intel They are two companies that supply chips to Huawei.Qualcomm is in SEC Filings Earlier this month, the company said it expected its operations to be “further impacted” by customers such as Huawei developing their own chips.
“While we continue to sell integrated circuit products to Huawei under license, we do not expect to receive product revenue from Huawei after this calendar year,” Qualcomm said.
In addition, if Huawei’s 5G equipment gains share from Chinese OEMs that use our 5G products or from non-Chinese OEMs that use our 5G products in equipment sold to China, our revenue, operating results and cash Streaming may be affected.
Last month, Huawei launched a new phone series – the Pura 70 series – to challenge apple in China.
Data from Counterpoint Research shows that Apple is facing pressure from Huawei in China. iPhone sales plummeted 19.1% in the first quarter, while Huawei’s smartphone sales soared 69.7%.
Huawei disclosed in March that its net profit in 2023 increased by 144.5% year-on-year to 87 billion yuan (about 12 billion U.S. dollars), partly due to the sales of Mate 60 Pro in China.
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