US chipmakers, namely Intel and Micron, are using loopholes to be able to continue selling products to Huawei, despite the ban that Trump signed last month. This is according to The New York Times.
The newspaper also noted that components began shipping to Huawei about three weeks ago.
Intel and Micron are taking advantage of a provision concerning how goods are labeled to ship them to Huawei. Basically, goods produced overseas by American companies, aren’t always seen as “American-made”. And considering both companies make the majority of their products in China and other places throughout Asia, it’s an easy loophole to take advantage of.
Last month, President Trump signed an executive order which placed Huawei (and a few other, lesser-known Chinese companies) on the Entity List. This list means that Huawei can’t do business with any American companies. Shortly after being put on the Entity List, Huawei’s US partners quickly started to drop support for the company, like a row of dominos.
Google was first to cut ties with Huawei, after that, many others followed suite. That included Qualcomm, Intel, Micron, Microsoft, and even ARM – who is not even an American company. We also saw the WiFi Alliance and SD Association drop support for Huawei, which all were pretty big blows to Huawei. Shortly after Google dropped support, however, the Commerce department did give Huawei a temporary license to work with US companies, through August.
The executive order that placed Huawei on this list, has been shot down by many tech companies. Saying that they don’t agree with it. Trump is essentially using this huge Chinese company as leverage in talks with the Chinese on a new trade deal. It’s unfortunate that Huawei is stuck in the middle of this one, and even if they are included in a new trade deal, their reputation has already been shattered. And it’s going to be tough for Huawei to make a comeback, if the trade deal ever does get finalized.
While Intel and Micron did resume shipments to Huawei a couple of weeks ago, the two companies – namely Micron – are unsure of how long that will last. Citing that there is still a lot of uncertainty with Huawei right now. Which is absolutely true. Huawei’s future in the US and with US partners, all rides on whether or not President Trump is the big dealmaker that he claims to be. Which as we’ve seen so far, he doesn’t seem to be all that great at making deals.
It’ll be interesting to see what President Trump and his White House has to say after hearing that Intel and Micron are still working with Huawei. Though, these US companies can still technically work with Huawei through August 19. Since it does have that temporary permit to work with US companies. But after that date, we’ll have to see what Trump has up his sleeves for Huawei, a company who he believes is spying on the US for the Chinese, despite showing zero evidence in that matter.