A positive spin the Huawei’s story seems to be taking place, as American chip suppliers including Qualcomm and Intel are *quietly* pressing the US government to ease the ban of sales to the Chinese tech company. Executives from the top US chipmakers, Intel and Xilinx Inc, attended a meeting in late May with the Commerce Department. This was a response to Huawei’s placement on the entity list.
As we’ve mentioned in our coverage of what’s been going on, Huawei is on an ‘entity list’. This basically prohibits US suppliers from selling to Huawei without special approval from the government.
Qualcomm has also pressed the Commerce Department over the issue, four people said. According to Reuters, the Chipmakers argue that Huawei units selling products such as phones and computer servers use commonly available parts. Therefore, they’re less likely to present the same security concerns as the Chinese tech firm’s 5G networking gear. Which essentially means that the phones don’t cause the issues, but the 5G gear potentially can.
In it’s very essence, it makes sense for companies to back up one of their own. The tech world is often comprised of multiple companies working together to create a product. Not just one manufacturer and parts.
“This isn’t about helping Huawei. It’s about preventing harm to American companies,” one of the people lobbying against the ban said.
Out of $70 billion that Huawei spent buying components in 2018, some $11 billion went to U.S. firms including Qualcomm, Intel and Micron Technology Inc. That means a lot of money for these U.S. firms, and the potential cutting off totally, could effect them worse than Huawei.