Intel expects revenue decline as US chip ban hits exports to China

Headline

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…

Context

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.”

Evidence

Pending intelligence enrichment.

Analysis

Also read: US pressures Allies not to cooperate with China on chips Also read: Blinken says chip bans won’t hinder China’s growth 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.

Key Points

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.”