US Revokes Some Intel, Qualcomm China Export Licences – Report

Beijing has reacted angrily after the United States revoked some Intel and Qualcomm’s chip export licences to China.

Reuters reported that Intel and Qualcomm have said on Wednesday that their sales would take a hit as a result, while Beijing reportedly complained the US move was going too far in the name of national security.

According to the Reuters report, which cited an Intel filing with the Securities and Exchange Commission, Intel did not disclose the name of the Chinese customer.

Exports to China

“On May 7, 2024, the US Department of Commerce informed Intel Corporation (the “Company”) that it was revoking certain licenses for exports of consumer-related items to a customer in China, effective immediately,” Intel’s filing stated.

“As a result, the Company expects revenue for the second quarter of 2024 to remain in the original range of $12.5 billion to $13.5 billion, but below the midpoint,” it added. “For full year 2024, the Company continues to expect revenue and earnings per share to grow year-over-year compared to 2023.”

In March it had emerged that Intel was being allowed to continue selling hundreds of millions of dollars’ worth of chips to the Chinese telecoms giant Huawei, despite it being a heavily sanctioned Chinese company.

Former President Donald Trump’s administration had added Huawei to the US Entity List in May 2019.

Essentially, US firms have to apply for permission or a license to sell anything to Huawei, and certain other Chinese firms.

In January 2023 the US Commerce Department reportedly stopped providing export licenses for Huawei, and in October 2023 the Biden Administration tightened export controls on advanced AI semiconductors to China.

Licences revoked

Now Reuters this week reported that the US has revoked licenses that allowed US companies to ship chips used for laptops and handsets to Huawei Technologies.

It comes after Huawei in April had released it’s first AI-enabled laptop, the MateBook X Pro powered by Intel’s new Core Ultra 9 processor.

Reuters noted this launch drew criticism from Republican lawmakers, who argued the laptop release suggested that the Commerce Department had given the green light to Intel to sell the chip to Huawei.

Intel’s shares fell 2.6 percent after its SEC filing.

Reuters reported that Qualcomm also said on Wednesday that one of its export licenses for Huawei had been revoked, but its shares were flat.

The Chinese foreign ministry reportedly said in a statement they opposed the move and that the US was “over-stretching the concept of national security and abusing export controls to suppress Chinese companies without justification.”

Tom Jowitt

Tom Jowitt is a leading British tech freelancer and long standing contributor to Silicon UK. He is also a bit of a Lord of the Rings nut...

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