US and Allies Tighten Grip on Huawei Tech

The US intensifies efforts to curb Huawei's access to advanced technology, with impact on tech giants Intel and Qualcomm. How will this affect the semiconductor industry and international relations?

Published May 09, 2024 - 00:05am

2 minutes read
United States
China
Germany
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Recent measures by the United States pointedly revoke Intel and Qualcomm's licenses to sell chips to Chinese telecommunications giant Huawei, a move that signals an escalation in tech-focused trade restrictions. The decision highlights the US government's resolve to cut China's access to semiconductor technology, reflecting ongoing national security concerns and the strategic rivalry between the US and China.

Intel has projected a revenue dip below its second-quarter expectations, while Qualcomm, which had limited dealings with Huawei due to previous restrictions, attests to full compliance with export control regulations. In response to these developments, China's Ministry of Commerce cried foul, calling the revocation a form of 'economic coercion' and a violation of World Trade Organization rules. The US Commerce Department, on the other hand, remains firm, alluding to a continuous reassessment of controls to protect national interests.

The Broadcom restrictions echo in allies' actions as countries like Japan, the Netherlands, South Korea, and Germany face pressure to tighten their controls over chipmaking technology, especially the kind that lands in Huawei's manufacturing lines. Republican lawmakers in the US have actively pushed against the supply of advanced chips to Huawei, particularly after the Chinese firm showcased a smartphone with a sophisticated, domestic processor.

An investigation by the US into Huawei's technology, particularly the 'purported' 7-nanometer chip, intensifies the scrutiny under which Chinese tech spans. However, there are nuances to the situation, considering Huawei's minor share in the global markets of desktop and notebook computers, raising questions about the financial repercussion these new sanctions may have on companies like Intel and Qualcomm.

Moreover, concerns regarding Huawei's involvement in 5G infrastructure arise, amid fears of potential backdoors that could favor Chinese espionage and cyber attacks. While such claims remain hotly contested, they add complexity to the geopolitical landscape, where advancements in technology often intersect with national security imperatives.

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