Semiconductor companies press for Huawei permits - Mobile World Live

Semiconductor companies press for Huawei permits

16 SEP 2019

US semiconductor companies urged the government to expedite approval of special permits allowing continued sales to Huawei despite a trade ban, Bloomberg reported.

The Semiconductor Industry Association told US secretary of commerce Wilbur Ross its members are concerned a lack of access to Huawei, the third-largest buyer of US semiconductors, will hurt profits and result in reduced R&D investment.

It pressed for “prompt action” to clear sales which don’t threaten national security, “particularly where there is foreign availability for competing products”.

The US added Huawei to a trade blacklist in May, blocking domestic companies from selling goods to the vendor without a special licence. The government extended a temporary measure last month allowing limited trade to continue, but that reprieve expires on 19 November.

Reuters reported US companies submitted more than 130 applications for special permits as of end-August, but none had been granted.

In June, Broadcom slashed its revenue forecast to reflect an expected $2 billion impact from the trade ban, with Qualcomm later warning of a likely impact to its earnings over the back half of the calendar year.

During a recent earnings call, Western Digital executives noted Huawei had begun sourcing components from its competitors and, while it resumed shipments of specific products to the Chinese vendor, this was at a lower rate.

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Diana Goovaerts

Diana joins Mobile World Live as its new US Editor, reporting on infrastructure and spectrum rollouts, regulatory issues, and other carrier news from the US market. Diana comes to GSMA from her former role as Editor of Wireless Week and...

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