- Intel reported in a securities filing on May 8 that it had been notified of the cancellation of licenses to sell to customers in China.
- The US Commerce Department revoked export licenses for some companies that supply semiconductors used in Huawei’s laptops, communication equipment, and other devices.
- Intel anticipated that the cancellation of the export license to China would result in second-quarter revenue falling below $13 billion.
The Biden administration revoked export licenses for Intel and Qualcomm, which had been supplying semiconductors to Huawei. The United States has placed Huawei on an export control list since 2019.
Export ban
The US government’s cancellation of Intel’s license for mass semiconductor exports is expected to result in lower-than-anticipated revenue for the company in the current quarter. Intel has expressed concerns about what it views as excessive measures taken by the US government under the guise of national security.
Consulting firm Beacon Global Strategies’ export control expert, Meghan Harris, stated, “This is a significant response indicating how seriously the US government views the matter. The US government assesses that US national security is threatened by Chinese technology.”
Also read: Intel develops the largest neuromorphic computer system
Impact on business
Upon hearing this news, Intel’s stock price dropped by 2.9% to $29.80 in the afternoon. Intel’s stock has declined by nearly 38% year-to-date.
Also read: Intel expects to ship 40 million AI PCs in 2024
Qualcomm also announced yesterday that one of its export licenses for Huawei had been revoked. However, Qualcomm is not expected to suffer a significant impact compared to Intel. At the same time, Qualcomm’s stock price initially dropped by over 1% in early trading but ended the day up by 0.22%.
