As per an Intel spokesperson, the company has received the green-light from the US department of defense to supply certain products to Chinese giant Huawei. This announcement comes amidst the worsening of US-China ties with Huawei finding itself in the crosshairs of the trade war.
As of September 15th, the latest regulations from bar any company from supplying Huawei with products made from US-sourced technology. Although many companies have applied for a similar license, only a few of them have been approved.
China’s largest foundry, SMIC which also uses US-origin equipment to fabricate chips for Huawei and other Chinese chipmakers is one such company. Prominent memory vendor SK Hynix has reportedly also applied for it but apparently hasn’t gotten approval.
In August, Taiwanese chip designer MediaTek Inc disclosed it had also applied to the U.S. government for permission to continue supplying China’s Huawei.
As per sources in the industry, US companies have a much higher chance of getting approval compared to non-US entities. Amidst all this uncertainty, suppliers are looking towards other options to fulfill their capacity. TSMC is one such company that has already filled the void left by the loss of Huawei’s orders.