The U.S has just revoked multiple licenses that allowed companies,and it includes Intel and Qualcomm, to ship chips to China for use by Huawei Technologies, the latest in an international battle of technology and semiconductors.

China’s efforts have been slowed by a wall of restrictions imposed by the United States to deny its geopolitical rival access to the latest semiconductors. The Biden administration is enlisting allies in Europe and Asia to adopt export controls on sophisticated equipment needed to make the most advanced chips.

The move was made after Huawei released their first AI-enabled laptop, the MateBook X Pro which is powered by Intel’s new Core Ultra 9 processor. This launch drew a ton of fire from Republican lawmakers, who accused the Commerce Department of giving the green light to sell the chip to Huawei. Republican lawmakers have been urging the Biden administration to take tougher action to thwart Huawei.

“This action will bolster U.S national security, protect American ingenuity, and diminish Communist China’s ability to advance its technology,” Republican Congresswoman Elise Stefanik said.

This move could be a thorn in the side of Huawei, which still relies on Intel to power its laptops, and it could also hurt the suppliers hoping to do business with the company. By the time we have written this article, the Commerce Department has declined to specify which licenses it has withdrawn. Intel and Qualcomm have also not commented on if their licenses were revoked as well.

Just recapping a fact, In 2019, Huawei was placed on a U.S trade restriction list with concerns that it could spy on Americans. This restriction means that the company’s suppliers have to seek a special, difficult-to-obtain license before shipping. Despite the restrictions, some suppliers have received this license worth billions of dollars to supply Huawei.Some critics argue such licenses have been a contributing factor to the resurgence of Huawei.

In this battle of technology and semiconductors it would be good to remember that Taiwanese TSMC tops the list of the largest producer of advanced semiconductors. The company earned 60% (or nearly $17 billion) of semiconductor foundry revenue in the first quarte of 2023. Japan is also getting into the mix, with Rapidus Corp. aiming to produce 2 nm chips by 2027.

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