Intel and Qualcomm lobby against Huawei ban

Image credit: Karlis Dambrans / Shutterstock (Image credit: Karlis Dambrans / Shutterstock)

While coverage surrounding the US government's Huawei ban has focused primarily on how the Chinese tech giant will be affected, it's worth remembering that the company's US suppliers also stand to lose a great deal of money in the fallout of President Trump's executive order. 

Now, it appears that US chipmakers, including Intel, Qualcomm and Xilinx Inc, have been quietly lobbying the US government in an effort to ease the Huawei ban, as reported by Reuters.

Citing sources close to the situation, executives from Intel and Xilinx Inc reportedly met with the US Commerce Department in late May to discuss a response to the Trump Administration's decision to place Huawei on the 'entity list', effectively barring US companies from trading with the Chinese brand. 

According to four other sources, Qualcomm has also reportedly met with the Commerce Department to discuss the issue. The Semiconductor Industry Association trade group has confirmed that it arranged meetings with US government on behalf of the chipmakers.

While the American chip suppliers don't deny the potential threat to national security that Huawei's 5G networking technology could present, the US companies also argue that the Chinese firm's servers and smartphones use commonly available components and are far less likely to pose a risk, sources also suggest.

Of course, the discussions are just that – a representative for the Commerce Department told Reuters that the governmental body “routinely responds to inquiries from companies regarding the scope of regulatory requirements,” but that the discussions do not “influence law enforcement actions.”

Looking out for number one

One thing that shouldn't be confused is the real reason for the US chipmakers' interest in the matter, which is to prevent the potential loss of billions in revenue. 

"This isn’t about helping Huawei. It’s about preventing harm to American companies," said one of Reuters' sources. 

The report also states that of the "$70 billion that Huawei spent buying components in 2018, some $11 billion went to U.S. firms including Qualcomm, Intel and Micron Technology Inc."

Singaporean-owned (but US-based) chipmaker Broadcom has already reported a decline in Q2 revenues and has lowered its expectations for the rest of the year, citing the US Huawei ban as the chief cause.

TOPICS
Stephen Lambrechts
Senior Journalist, Phones and Entertainment

Stephen primarily covers phones and entertainment for TechRadar's Australian team, and has written professionally across the categories of tech, film, television and gaming in both print and online for over a decade. He's obsessed with smartphones, televisions, consoles and gaming PCs, and has a deep-seated desire to consume all forms of media at the highest quality possible. 

He's also likely to talk a person’s ear off at the mere mention of Android, cats, retro sneaker releases, travelling and physical media, such as vinyl and boutique Blu-ray releases. Right now, he's most excited about QD-OLED technology, The Batman and Hellblade 2: Senua's Saga.

Latest in Huawei Phones
Holding the Huawei Mate XT in-hand
I thought the tri-folding Huawei Mate XT was a gimmick, but then I held it
The Huawei Mate X6 on a pink background
The Huawei Mate X6 looks like a huge step forward for foldable phone photography, and I’m annoyed that I probably won’t be able to get one
The Huawei Mate XT and PS5 Pro side-by-side
Huawei's tri-fold phone is so expensive you could buy four PS5 Pros for the same price
Huawei Mate XT
Huawei posts the first official image of the tri-fold Mate XT, and reveals storage options
Samsung's tri-folding display technology unveiled at the SID Display Week 2021 online event
Huawei finally confirms the name of its tri-fold smartphone in new teaser video
Samsung's tri-folding display technology unveiled at the SID Display Week 2021 online event
Huawei sets the date for its tri-foldable phone launch, with a 10-inch display and high price rumored
Latest in News
Brad Pitt looks over his right shoulder with 'F1' written behind him
Apple Original Films will take you behind-the-scenes of a racing cockpit in this new thrilling F1 movie trailer
AI writer
Coding AI tells developer to write it himself
Reacher looking down at another character from the Prime Video TV series Reacher
Reacher season 3 becomes Prime Video’s biggest returning show thanks to Hollywood’s biggest heavyweight
Image showing detail of the Leica D-Lux 8
Still can't get a Fujifilm X100VI? This premium Leica compact costs less, and it's in stock
Man using iMessage on an iPhone
Apple will finally enable encrypted RCS messages between iOS and Android, and it's about time
Google Messages update
Google Messages could soon follow WhatsApp with an upgrade that makes it much easier to join group chats