Intel Gets US License To Continue Supplying To Huawei
Intel Corporation (NASDAQ: INTC) has received the federal government nod to keep supplying Huawei Technologies with certain products, Reuters reported Tuesday.
What Happened: The Santa Clara, California-based chipmaker has received the relevant licenses from the United States authorities to supply Huawei even amid U.S.-China relations reached their lowest in recent times, according to the state-backed China Securities Journal, Reuters noted.
Last week, China’s Semiconductor Manufacturing International Corporation, a company that uses U.S. origin equipment to make chips, had reportedly applied for permission to supply to Huawei.
Why It Matters: Since Sept. 15, new restrictions have been in place that forbid U.S. companies from either supplying products or providing services to Huawei, Reuters noted.
The U.S. has expressed concerns that China’s 5G technology could give it an edge over it.
Gary Mobley, an analyst that focuses on Qualcomm, Inc (NASDAQ: QCOM), said that the restrictions put in place on Huawei by the U.S. Commerce Department could directly or indirectly help the San Diego-based tech company.
Price Action: Intel shares closed nearly 0.3% lower at $49.72 on Monday and gained 0.5% in the after-hours session.
Photo courtesy: sixflashphoto via Wikimedia
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