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US companies ask government to ease the Huawei ban

By midian182 · 8 replies
Jun 17, 2019
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  1. According to a Reuters report, executives from Intel and Xilinx met with the Commerce Department late last month to discuss Huawei’s placement on the entity list, which stops US firms from doing business with it without a license from the government.

    Qualcomm also met with the Commerce Department to discuss the issue, according to four people familiar with the matter. Trade group The Semiconductor Industry Association (SIA) confirmed it helped arrange meetings between the companies and the US government.

    The firms aren’t disputing that using Huawei’s tech in 5G networks could pose a threat to national security, but they argue that its smartphones and servers, which use commonly available parts, are unlikely to present the same risk.

    “This isn’t about helping Huawei. It’s about preventing harm to American companies,” one of the people said.

    Reuters notes that of the $70 billion that Huawei spent purchasing components in 2018, $11 billion went to US firms. Broadcom alone warns that US-China trade tensions and the Huawei ban would knock $2 billion off its sales this year.

    A Commerce Department rep said it “routinely responds to inquiries from companies regarding the scope of regulatory requirements,” and that these discussions do not “influence law enforcement actions.”

    Huawei itself is feeling the repercussions from the trade ban. It recently had to indefinitely postpone the release of a new MateBook laptop, while Bloomberg reports the company is preparing for a 40% to 60% drop in international smartphone shipments.

    The situation is so grim for Huawei that the Honor 20, which is set to launch in the UK and France on June 21, could stop being shipped soon after release. With consumers worried about the phone soon being unable to receive Android OS and App updates, sales might be dire.

    Permalink to story.

     
    Last edited: Jun 17, 2019
  2. S Hone

    S Hone TS Rookie

    Huawei cannot replace Amercian chips for Intel / AMD... So some other manufacturer of PC's and servers will have to fulfill those orders - so does that not just mean those sales will be replaced by an alternative to Huawei?

    Also - if Huawei devices dont sell outside of China then clearly another company will take up those sales too.?
     
  3. Stormbreaker

    Stormbreaker TS Rookie

    Clearly they didn't thought it through.
     
    TempleOrion, Goamist and S Hone like this.
  4. QuantumPhysics

    QuantumPhysics TS Evangelist Posts: 1,240   +901

    How does Apple feel about this?
     
  5. emmzo

    emmzo TS Addict Posts: 181   +75

    What is it that these firms don`t understand about national security? Yes, there are going to be some big loses, nothing that they can`t recover, but the alternative is in 50 to 100 years they`ll be out of business as with the constant theft of technology and unlimited resources the Chinese will obtain complete supremacy. I`m sure it is more tediously intricate than that, but that`s the bottom line.
     
    tacobravo and kombu like this.
  6. lexster

    lexster TS Maniac Posts: 466   +233

    This will fail. The damage is done. Huawei is out, they did it to themselves. Get over it people and move on.
     
  7. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 11,390   +5,018

    It was a necessary evil.
     
  8. Markoni35

    Markoni35 TS Booster Posts: 196   +93

    Let's ban all the devices that have operating systems and chips which spy on their customers.
    Oh, wait... that means all the Android and iPhone devices.
    We're going back to Nokia 3310.
     
    TempleOrion and Charles Olson like this.
  9. lexster

    lexster TS Maniac Posts: 466   +233

    I was thinking Nokia E6, and yeah, I'd be ok with that. I love Android, but am sick to death of all the BS we have to deal with these days due to smartphones.
     
    Last edited: Jun 18, 2019
    TempleOrion and Charles Olson like this.

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