U.S. Revokes Intel, Qualcomm Chip Licenses to Huawei; Shares Drop 1%

May 8, 2024, 06:20 AM

The Biden administration has revoked export licenses that allowed U.S. chipmakers Intel and Qualcomm to supply semiconductors to Chinese telecommunications giant Huawei. This move, driven by U.S. alarm at Huawei's ability to develop advanced chips, is part of a broader strategy to tighten export controls and increase pressure on Huawei, which the U.S. government views with increasing security concerns. The revocation of these licenses affects the supply of chips for laptops and mobile phones, significantly impacting Huawei's ability to procure essential components for its products. Following the announcement, shares of Qualcomm and Intel dropped about 1%.