US Revokes Intel, Qualcomm Licenses to Sell Chips to Huawei

The US has revoked licenses allowing Huawei Technologies Co. to buy semiconductors from Qualcomm Inc. and Intel Corp., according to people familiar with the matter, further tightening export restrictions against the Chinese telecom equipment maker.

The decision will affect sales of chips for use in Huawei phones and laptops, according to the people, who discussed the move on condition of anonymity. House Foreign Affairs Committee Chairman Michael McCaul confirmed the administration’s decision in an interview Tuesday. He said the move is key to preventing China from developing advanced artificial intelligence.

“It’s blocking any chips sold to Huawei,” said McCaul, a Texas Republican who was briefed about the license revocations for Intel and Qualcomm. “Those are two companies we’ve always worried about being a little too close to China.”

While the decision may not affect a significant volume of chips, it underscores the US government’s determination to curtail China’s access to a broad swathe of semiconductor technology. Officials are also considering sanctions against six Chinese firms that they suspect could supply chips to Huawei, which has been on a US trade restrictions list since 2019.

Intel expects revenue to fall “below the midpoint” of its previously guided range of $12.5 billion to $13.5 billion in the second quarter due to the ban, it said in a statement on Wednesday.

Intel shares fell 2.4% to $29.95 at 9:32 a.m. in New York. Shares of Qualcomm and rival chipmakers Advanced Micro Devices Inc. and Nvidia Corp. also declined following Intel’s announcement.

Withdrawing the export licenses is “economic coercion” and violates World Trade Organization rules, China’s Ministry of Commerce said in a statement on Wednesday.