USA offers lifeline to Huawei: Allows Intel to supply components

By Backend Office, Desk Reporter
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US authorities have reportedly allowed semiconductor giant Intel Corporation to resume distributing specific products to the Chinese multinational technology company, Huawei.

While US-China relations remain their worst in decades, the US authorities are pushing governments around the globe to squeeze out Huawei, by claiming that the telecoms giant transfers user’s data to the Chinese government for spying purposes.

Since September 15, new regulations have banned U.S. companies from supplying equipment or servicing Huawei. The new ban threatened to cut off the supply of key components to Huawei smartphones and other products – from semiconductor to display, camera lenses and vital printed circuit boards.

The state-backed China Securities Journal reported this week that Intel has gained permission to supply components to Huawei.

Last week China’s Semiconductor Manufacturing International Corporation (SMIC) confirmed it has also sought permission to continue service to Huawei. SMIC needed permission because US companies such as Applied Materials were providing some of the machines used in the chip fabs.

According to the reports, Chipmakers such as Macronix, Micron and SK Hynix recently joined Qualcomm and Samsung, seeking permission from the US to sell electronic components to Huawei.

Huawei has denied the spying allegations over the company and said the United States is trying to smear it because Western firms are falling behind in 5G technology.

Experts say, the US fears that that 5G dominance will provide China advantage, which cannot be accepted by Washington.

Intel Corporation

American Multinational Corporation and Technology Company, Intel Corporation is the world’s largest and most valuable semiconductor chip maker, and the inventor of the x86 series microprocessors, the processors found in personal computers.

Huawei Technologies

Huawei Technologies Corporation Limited headquartered in Shenzhen, develops, designs, and sells telecommunications equipment and consumer electronics especially smartphones. The company extended business including telecommunications networks, providing operations, consulting services and equipment to enterprises inside and outside China.