US chip suppliers quietly push Commerce Dept to ease ban on Huawei - report

News General United States 18 JUN 2019
US chip suppliers quietly push Commerce Dept to ease ban on Huawei - report

Some chip suppliers to Huawei from the US have been quietly pushing for the US government to soften its ban on sales to the Chinese company, CNBC reported. Huawei has not lobbied directly to Washington but has considered sending a letter to the Commerce Department, sources said. The chip suppliers, which include Qualcomm, Intel and Xilinx, attended a meeting last month with the Commerce Department to discuss a response to Huawei’s placement on the black list. Qualcomm has also pressed the Commerce Department over the issue, sources said. The chip makers argue that Huawei units selling products such as smartphones and computer servers use commonly available parts and are unlikely to present the same security concerns as its 5G networking equipment.  

“This isn’t about helping Huawei. It’s about preventing harm to American companies,” one of the sources said. 

Out of USD 70 billion that Huawei spent buying components in 2018, around USD 11 billion went to US firms such as Qualcomm, Intel and Micron Technology. Qualcomm, for example, wants to be able to continue shipping chips to Huawei for common devices like phones and smart watches, a source said. 

The Semiconductor Industry Association (SIA) acknowledged it arranged consultations with the US government on behalf of the companies to help them comply and brief officials on the impact of the ban on the companies. “For technologies that do not relate to national security, it seems they shouldn’t fall within the scope of the order. And we have conveyed this perspective to government,” said Jimmy Goodrich, vice president of global policy at SIA. Google, which sells hardware, software and technical services to Huawei, has also advocated so it can keep selling to the company, Huawei Chairman Liang Hua told reporters in China earlier this month. 

Intel, Xilinx and Qualcomm declined to comment. Huawei did not respond to a request for comment.

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