Intel supplying Huawei through license, getting around Trump blacklist

  • Intel said it has received licenses from the US government to sell certain products to Chinese tech giant Huawei, which was put on a trade blacklist back in May 2019.
  • President Donald Trump in May banned American companies from selling to Huawei, the world’s largest telecoms equipment maker, without special permission. 
  • Other tech companies including SMIC and SK Hynix have also requested a license to supply Huawei, Reuters reported.
  • Visit Business Insider’s homepage for more stories.

US tech giant Intel Corp is continuing to sell products to Huawei, despite the Chinese firm being blacklisted by the US government since May 2019.

An Intel spokesman said Tuesday that the chip manufacturer has received licenses from the US government to supply Huawei with certain products. It did not specify which products it could sell.

Chinese tech firm Huawei was placed on the Entity List — a trade blacklist including more than 275 Chinese firms — in May 2019, banning American companies from selling to the world’s largest telecoms equipment maker without special permission. 

Intel’s statement suggests it sought permission to sell products to Huawei, and received a licence. Local media reported on September 15 that China’s Semiconductor Manufacturing International Corp (SMIC), which uses US technology to make chips, asked for approval last week from the US government to continue supplying Huawei, and that South Korean chipmaker SK Hynix also applied but was rejected.

Business Insider has contacted Intel for comment. 

The Trump administration argues that Huawei poses a national security threat and could provide US citizens’ data to the Chinese government.  Huawei denies this, and says it has been targeted for geopolitical reasons, rather than because of privacy or security concerns.

Despite the ban, President Donald Trump told Chinese President Xi Jinping in May that he would allow US companies to sell products to Huawei, indicating the ban may be easing, but officials insisted the tech giant was still blacklisted.

Last week, the US government announced new restrictions on American firms supplying or servicing Huawei, meaning the tech company will be unable to buy any chips made from US technology, according to a report from Reuters.

Get the latest Intel stock price here.

Source Article