Huawei Faces Losses as US Revokes Laptop Chip Licenses

The US government has revoked the licenses granted to Intel and Qualcomm to sell laptop chips and handheld devices to Huawei Technologies, according to multiple sources. This move comes after Huawei launched its first AI-powered laptop MateBook X Pro, which is powered by Intel’s new Core Ultra 9 processor, last month. Republican lawmakers have criticized the move, stating that it will harm Huawei because it still relies on Intel chips for laptops. However, American suppliers doing business with Huawei have also suffered losses due to the trade restrictions placed on the company in 2019.

Intel is facing weak demand for its chips for data centers and PCs, as evidenced by the $11 billion loss in capitalization last month after forecasting lower-than-expected second-quarter revenue and profits. On the other hand, Qualcomm has a license to sell older generation 4G chips to Huawei in 2020 but is not expecting additional chip revenue from the company after this year. However, Qualcomm is still licensed to do business in 5G technology with Huawei. Critics argue that such licenses have contributed to Huawei’s resurgence in recent years.

Huawei was placed on the US trade restrictions list in 2019 due to security concerns, making it difficult for American companies to do business with them without a special license from the US government. Despite this, American companies have still received licenses to sell billions of dollars in goods and technology to Huawei over the years. One such controversial license was issued by the Trump administration, approving Intel to supply central processors to Huawei for use in laptops starting in 2020.

The revocation of these export licenses has caused controversy among both Republicans and Democrats alike. While some see it as necessary for national security reasons, others argue that it will hurt American innovation and reduce China’s ability to develop technology. In response to this move by the US government, Qualcomm has begun negotiations with Huawei to extend its patent agreement with them beyond their current expiration date of Qualcomm’s fiscal year 2025. Meanwhile, critics argue that such licenses have contributed significantly