The Trump administration has informed huawei suppliers, including Intel, that it is revoking specific licenses that allow supplies to Huawei and intends to deny dozens of applications for permission to supply Huawei, Reuters reported, citing sources.
This action could represent the latest blow to Huawei and China’s 5G development by President Trump. Huawei is the world’s largest telecommunications manufacturer, and the U.S. considers the company a threat to U.S. national security and foreign policy interests.
An Intel spokesman has not immediately responded to the news, nor has a spokesman for the U.S. Department of Commerce.
In the relevant documents seen by Reuters, the U.S. Semiconductor Industry Association 15 said the Department of Commerce has issued a document of intent “to deny a large number of requests to ship Huawei’s licensing requirements, and has withdrawn at least one previously issued license.
Sources close to the matter said that not only one Huawei supply license was withdrawn. One of the sources said that eight licenses issued to four companies were suddenly withdrawn.
Japanese flash memory maker Kioxa has had at least one license revoked, two of the sources said. Reuters was not immediately able to get a response from Kioxa.
Emails from the Semiconductor Industry Association of America show that the actions involve “a wide range of products” in the semiconductor industry and ask whether companies have received notice of the revocation of Huawei’s supply licenses.
Companies that receive a “notice of intent to deny” from the U.S. government have 20 days to respond, and the Commerce Department has 45 days to inform them of adjustments related to the decision, otherwise, the denial becomes final. Companies then have 45 days to file an appeal.
The U.S. added Huawei to the Commerce Department’s “Entity List” in May 2019, which restricts suppliers from selling U.S. goods and technology to Huawei. However, when the U.S. raised restrictions on Huawei, some sales were allowed to go through, while others were denied. Previously tightened restrictions included a requirement that companies using semiconductors made with U.S. technology outside the United States must also apply for a supply license.
Before the U.S. took this latest action, about 150 licensing applications were being processed, containing $120 billion worth of goods and technology. But these license applications are on hold because the various U.S. administrative agencies can not reach a consensus on whether to issue the license.
Another $280 billion worth of goods and technology licenses for Huawei have not yet been processed and now face a higher chance of being denied, the sources said.
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