- The Department of Commerce revoked some licenses to sell chips to Huawei, impacting US companies that count the Chinese technology company as a customer.
- Intel expects new export restrictions to China to impact its revenue for the next quarter, according to a new financial filing, which it said impacted the export of “consumer-related items to a customer in China, effective immediately.”
Intel’s revenue for the next quarter may be impacted by a new chip export license revoke made by the US Department of Commerce to sanctioned Chinese company Huawei, according to its new financial filing.
Intel did not list Huawei by name in the filing, but said that this measure impacted the export of “consumer-related items to a customer in China, effective immediately.”
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U.S. continuous acts in trade tensions
Intel said its revenue for the second quarter of 2024 will still fall within the original range it outlined of $12.5 billion to $13.5 billion but below the midpoint.
Huawei has been on a US trade blacklist since 2019, limiting its ability to buy parts from US companies without the government’s approval. With the rise of generative AI, for example, the U.S. has created rules meant to restrict the flow to China of advanced chips that can be used for AI.
Intel lists “geopolitical and trade tensions between the US and China” as well as “rising tensions between mainland China and Taiwan” as risks to its business.
Qualcomm, which also supplies chips to Huawei, had previously warned that it “does not expect to receive product revenue from Huawei after this calendar year”, given reports at the time that the US was considering revoking a new sales license for Huawei.
