Huawei Banned From Procuring From USA
Donald Trump struck another blow on Huawei days before the end of his US Presidency. The US administration has banned long established brands such as; Intel from sourcing products from many Chinese based suppliers, including Huawei.
US President Donald Trump seems to be playing his last trump card against Huawei; just before he took over the presidency on Wednesday. The Trump administration previously imposed an embargo on the Chinese technology giant on the grounds that; Huawei is working with the Chinese military and threatens the US national privacy. This time, they banned Huawei from sourcing products from well established brands such as Intel.
Huawei and Intel have not made a statement yet after the decision to cancel the licenses. The shares of other names whose licenses were revoked such as Samsung Electronics and Japanese Advantest began to decline.
Huawei’s $280 billion licenses could be revoked
Among the brands whose licenses have been revoked is also Kioxia Corp, formerly known as Toshiba Memory Corp. The US administration gave all companies affected by the new policies 45 days to appeal the decision. An Intel spokesperson said the company would not comment on the new decisions. However, Intel’s licensing policies were to protect the US national security and foreign policy interests.
Just before these decisions, Huawei started a difficult process and applied to major brands such as Intel for a license application worth $280 billion. Huawei was waiting for licenses for 150 different products, but according to the claims, Intel started to cancel the licenses of products with 5G technology.
Intel Corp obtained special licenses to supply products to Huawei in September 2020, thus establishing a secure link with the embargoed brand. With the new decisions, whether Intel will completely change the names in the supply chain will be clear after Joe Biden takes office as President of the USA.