Qualcomm can sell chips to Huawei despite sanctions, says U.S. government

Despite trade restrictions on U.S. companies working with China, Qualcomm has been given the go ahead to sell 4G mobile phone chips to Huawei by the U.S. government. The news, reported by Reuters, comes less than 3 months after the U.S.government doubled down on the executive order of 2019 by placing even tighter restrictions on Huawei’s ability to purchase chips – semiconductors – from U.S. companies.

The story highlights the way in which the rhetoric against Chinese tech companies in general – and Huawei specifically – conceals a more ambivalent attitude to trade with China. Action has typically been made in the name of national security; this indicates that the picture painted in public by U.S. officials is actually far more nuanced than presented.

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What is Qualcomm and why is it allowed to sell to Huawei?

Qualcomm is a semiconductor manufacturer. Although it isn’t anywhere near as visible as many other technology companies, it is nevertheless a critical part of the tech industry. Many Android devices use Qualcomm chips – if you’re using an Android device, it’s likely that you’ve got a Qualcomm chip in your hand now.

It’s not entirely clear why Qualcomm has been given the go ahead to sell to Huawei. However, according to a spokeswoman who spoke to Reuters, the company has received “a license for a number of products.” It’s worth noting that this license ony covers 4G products – it’s not clear whether future licenses could include 5G semiconductors.

It was reported in August that Huawei was facing a shortage of chips due to the U.S. sanctions. Following this news, the Wall Street Journal reported that Qualcomm lobbied the U.S. government to request permission to sell 5G chips to Huawei. It would seem, then, that its lobbying mission was at least partly successful. It will be interesting to see how the company influences the ongoing trade war in the future.

Other companies have licenses to sell to Huawei

The Reuters report notes that Qualcomm isn’t the only U.S. company that has a license to sell to Huawei. Santa Clara-based semicondiuctor company Intel already has a license, while Micron is apparently in the process of applying for the relevant licenses.