US chipmakers seek to ease Huawei restrictions due to business loss

It seems like Huawei’s ban effect is started to be seen on the US firms because recently more and more US firms are standing with concerns over their business loss due to the restrictions on Huawei.

Huawei to use its large patent bag against U.S. firms

Executives from US chipmakers Intel, Qualcomm and Xilinx attended a meeting in late May with the Commerce Department to discuss a response to Huawei’s placement on the blacklist, reported Reuters.

Back in May, the US commerce department barred Huawei from buying components and software from American firms. The listing also prohibits firms including Google, Intel, Qualcomm, Microsoft, Xilinx, Broadcom and more from continuing business ties with the Chinese telecom giant.

The chipmakers clarify that Huawei products such as smartphones and computers servers use commonly available parts and are unlikely to present the same security concerns as networking technology.

In 2018, Huawei spent around $70 billion on buying components from that $11 billion accounted to U.S. firms including Qualcomm, Intel, and Micron Technology Inc.

During an interview in Mexico, Andrew Williamson, vice president of Huawei’s public affairs, said the company had not asked anyone specifically to lobby on its behalf.

“They’re doing it by their own desire because, for many of them, Huawei is one of their major customers,” he said, adding that chipmakers knew that cutting Huawei off could have “catastrophic” consequences for them.