Affecting Intel's Revenue
🟦 U.S. Government Revokes Semiconductor Export License to Huawei
The U.S. Department of Commerce has revoked a semiconductor export license to Chinese telecommunications equipment giant Huawei. The target seems to be semiconductors for laptops and smartphones. The names of the companies subject to the revocation of the license have not been disclosed, but it is likely to be Intel and Qualcomm.
The revocation of Huawei’s semiconductor export license is expected to lead to a decline in Intel’s revenue in the second quarter of 2024. Huawei had released the MateBook X Pro, a personal computer equipped with Intel’s latest semiconductors.
🟦 Stricter restrictions on technology licensing due to suspension of semiconductor exports
The U.S. government plans to further tighten the semiconductor restrictions on China that came into effect in 2022 and restrict the provision of technology to Huawei. There are three reasons why the U.S. government has revoked the semiconductor export license to Huawei.
- National Security Concerns: Huawei has close ties to the Chinese government, and the U.S. government has determined that Huawei products may threaten U.S. national security.
- Technology theft by China: The U.S. government is concerned that Huawei could steal U.S. technology and use it to bolster China’s military capabilities.
- Impact on U.S. economic competitiveness: Huawei is rapidly emerging in the field of semiconductors, and the U.S. government fears that Huawei’s growth will have a negative impact on the U.S. semiconductor industry.
🟦Summary
On May 7, 2024, the U.S. government revoked a semiconductor export license to Chinese telecommunications equipment giant Huawei, further tightening restrictions on technology licensing. This is likely due to national security concerns, technology theft by China, and the impact on the economic competitiveness of the United States.
The U.S. government’s revocation of the semiconductor export license to Huawei marks a new phase in the US-China technology war.