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The US has stemmed the flow of chips to Huawei, citing ‘national security’

Washington has revoked a number of export licences that allowed Huawei to utilise US-made technology.

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UPDATED: 09 May 2024, 8:13 am

Washington has revoked certain export licences that allowed US chip manufacturers – reportedly Intel, Qualcomm and others – to supply Huawei with semiconductors, in what CNBC called a bid to curb China’s tech power.

The decision will impact the Chinese tech giant’s supply of 5G chips for smartphones and laptops, according to sources cited by the Financial Times. It will also affect the companies that sell semiconductors, a crucial component of 5G chips.

A spokesperson from the US commerce department said the move was designed to “best protect our national security and foreign policy interests, taking into consideration a constantly changing threat environment and technological landscape.”

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The US has been tightening its control over the chip market since 2019, when it put Huawei on a trade blacklist – claiming the Shenzhen-headquartered company helps Beijing engage in cyber espionage. Huawei has strongly denied the allegations.

The latest revocation of export licences came after Huawei demonstrated its ability to develop advanced chips via the launch of its Mate 60 Pro smartphone and MateBook X Pro laptop. 

The Chinese commerce ministry has said it “firmly opposes” the US’ decision, which it described as “economic coercion.”

UPDATED: 09 May 2024, 8:13 am

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