Intel has successfully fended off an attempt to halt its chip sales to Huawei, providing itself more time to continue supplying the heavily sanctioned Chinese telecoms company. The push to revoke Intel's license, issued by the Trump administration, came from rival Advanced Micro Devices (AMD), which argued it was unfair as it did not receive a similar license to sell chips to Huawei. 

The uneven terrain in restricting Beijing's access to advanced American technology, particularly for a heavily sanctioned firm like Huawei, showcases the challenges faced by companies in the US. Despite the pressure, Intel's ability to maintain its license highlights the uncertain landscape surrounding such decisions.

US President Joe Biden faced calls to revoke the license, allowing Intel to ship advanced central processors to Huawei for use in laptops. While Huawei's share of the global laptop market remained intact, AMD lost out on significant sales to the Chinese company. The impact of Intel retaining its license while AMD was denied permission was evident in the sales figures. AMD's share of sales for Huawei laptops with its chips plummeted from 47.1% in 2020 to 9.3% in the first half of 2023, while Intel's share soared from 52.9% to 90.7%. The disparity in revenue, estimated to be over$512 million by early 2023, emerged as a consequence of these developments. 

Why does it matter?

The dynamics of this situation highlight the complexities and geopolitical considerations involved in regulating technology sales to sanctioned entities since the push for tighter restrictions on Huawei's access to American technology has been a focal point in the ongoing trade war between the US and China. Huawei, added to the trade restriction list in 2019 by the Trump administration over alleged sanctions violations, has symbolised this conflict.

The Commerce Department initially hinted at revising Huawei's licensing policy and later shelved plans to revoke licenses, raising questions about the decision-making process. Intel's license is set to expire later this year, and Huawei is still determining its renewal while it continues to rely heavily on Intel chips for its laptops in China.