Huawei could be in for major relief as US reportedly reinstates chip sales
- According to reports, the US has allowed chipmakers to sell components to Huawei.
- Smartphone chip components can be sold to Huawei as long as they are not used for the 5G business.
Huawei could get some relief when it comes to the smartphone business. According to a Financial Times (FT) According to reports, the US has begun allowing chip manufacturers to ship components to Huawei. The only caveat is that the components should not be used for the Chinese brand’s 5G business.
The US Department of Commerce “has told companies in recent talks that while licenses to ship Huawei are being treated for denial, it can be overcome if you can show that your technology does not support 5G,” according to one named chip manufacturer who is involved in discussions with US authorities FT. The chip maker was reportedly referring to Huawei’s 5G infrastructure business.
The move could be a huge boon for Huawei, which has been under the US trade ban since last year. Recent U.S. government restrictions prohibited Huawei from sourcing hardware made with U.S. technologies. Due to these sanctions, Huawei lost TSMC as a chip manufacturer and thus meant the end of its Kirin processors.
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Between that recent relief and the move that allows Samsung Display to ship Huawei OLED panels, the cloud of U.S. restrictions seems to be slowly loosening from the Chinese phone maker.
Although the US will reportedly continue to restrict the company’s access to 5G devices, the resumption of other chip components could mean the Kirin story is not over after all.
FT Two Asian semiconductor companies are reportedly optimistic about obtaining licenses to do business with Huawei. “We have been shown that chips for mobile devices are not a problem,” said one of them.
The U.S. Department of Commerce has not received any official information on these relief efforts, so it’s a waiting game for now.
