Briefing: US chip makers circumvent Huawei ban to resume some sales
Jun 26, 2019
U.S. Tech Companies Sidestep a Trump Ban, to Keep Selling to Huawei – The New York Times
What happened: A number of the biggest American chip makers including Micron and Intel have sold millions of dollars of products to Huawei despite its placement on a trade blacklist. These American suppliers began selling components produced overseas to Huawei about three weeks ago, permissible for American goods which are not made in the US and do not contain technology that can pose national security risks. People with knowledge of the sales said the blacklist on Huawei caused confusion and many executives of American suppliers who lacked deep experience with US trade controls initially suspended shipments to Huawei.
Why it’s important: Sales to Huawei comprise significant portions of revenue for many American chip makers; Huawei said it spends around $11 billion in technology from US companies each year. Micron’s shares rose as much as 10% on Tuesday after the company said it had resumed some microchip shipments to Huawei. Meanwhile, the trade blacklist effect on Huawei may be lesser than expected as chip makers grow increasingly savvy about US trade policy.