US Chip Export Ban to Huawei Rattles Market; Intel Stocks Tumble

May 11, 2024
US Chip Export Ban to Huawei Rattles Market; Intel Stocks Tumble
  • The US government has revoked export licenses for Intel and Qualcomm, disrupting chip shipments to Huawei.

  • Intel's stock value fell nearly 3% following the revocation, compounding a 40% drop earlier in the year linked to the US ban on chip exports to Huawei.

  • The revocation of licenses affects not just Huawei but carries wider implications for overall chip sales to China, underlining the complexities of the global tech market.

  • China has criticized the US, accusing it of unjustly using export controls to suppress Chinese firms, escalating tensions between the two nations.

  • The US Department of Commerce has not detailed which permits were cancelled, but Intel and Qualcomm confirm some of their export licenses have been revoked.

  • The export restrictions are part of a continuation of the US's 2019 technology export curbs to Huawei over alleged connections to the Chinese military.

  • Intel's CEO Pat Gelsinger's strategy to reinvent the company as a foundry faces skepticism from analysts and a reduction in net earnings forecasts, indicating the hurdles in Intel's turnaround efforts.

Summary based on 12 sources

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