According to the latest information, the Trump administration has notified key Huawei suppliers of revoking certain licenses that allow them to sell their goods to the Chinese tech giant.
Source of Reuters reports that suppliers including chipmaker Intel and dozens of others that have received the license to continue business with the company before are now rejected.
The latest assault on Huawei came amid Donald Trump’s days of the presidency will be over on January 20, as Joe Biden will take the oath as the next U.S. President on Wednesday.
It’s also revealed that Semiconductor Industry Association on Friday said that the Commerce Department had issued “intents to deny a significant number of license requests for exports to Huawei and a revocation of at least one previously issued license.”
Sources suggest that there are a total of eight licenses scraped from four major firms.
The semiconductor association’s email said the actions spanned a “broad range” of products in the semiconductor industry and asked companies whether they had received notices.
The email noted that companies had been waiting “many months” for licensing decisions, and with less than a week left in the administration, dealing with the denials was a challenge.
Companies that have been ordered under this new decision have received the “intent to deny” notices and will be given 20 days to respond, and the Commerce Department has 45 days to advise them of any change in a decision or it becomes final.
These latest actions from the Trump government are not surprising as recently, his administration added more Chinese companies such as Xiaomi to the blacklist to halt their business access in the U.S. market.
In May 2019, U.S. Commerce Department added Huawei to Entity List and restricted suppliers from selling U.S. goods and technologies to the Chinese tech giant.
Following the Entity List announcement, U.S companies were given the choice of applying for special licenses to sell to Huawei. However, only a number of goods categories were allowed to be sold to the Chinese company.
The sources added, around 150 companies had applied for the license for $120 billion worth of goods and technology, which had been held up because various U.S agencies could not agree on whether they should be granted.
Still, another $280 billion of license applications for goods and technology for Huawei still have not been processed.
Companies such as Intel has received a license from U.S. commerce to continue business with Huawei. On the other hand, the company wasn’t allowed to get 5G network equipment products.