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USA is ready to give licenses for the supply of components to Huawei. But little by little in non-critical areas
US sanctions hit Huawei hard. At first, the company was prohibited from selling its products in the United States. Later, a ban was introduced on trade with American companies. But the biggest blow for the Chinese company was the ban on the purchase of components containing American technology, including processors. Fortunately, according to the Financial Times, the United States may again allow companies to work with Huawei, but with serious restrictions.
A spokesman for a semiconductor company told the Financial Times that according to the US Department of Commerce, applications for licenses to supply Huawei products by chip companies are being processed for refusal. However, chip makers have a chance to get permission to cooperate with the Chinese tech giant, provided they prove that the components they supply are not related to 5G technology. In any case, the likelihood that the US will allow companies to sell Huawei chipsets is extremely small. Rather, we are talking about various components for smartphones, for example, controllers, which are necessary for the implementation of the camera, display and other peripherals.
It is a good sign that recently Washington has allowed several companies to resume shipments of Huawei non-5G components at once. So, earlier this week, Samsung Display received permission to supply its Huawei screens, and today it became known that Sony and OmniVision received a similar permission to supply image sensors for cameras. Unfortunately, at the moment there is no information about the resumption of cooperation between Huawei and any chip manufacturers. The last word still rests with the US Department of Commerce.
“We believe this is a compelling sign that the US intends to allow Huawei to remain in the smartphone business as it does not pose a threat to the country’s national security,” said Edison Lee, an analyst at Jefferies.
According to Lee, Washington will likely allow Qualcomm and MediaTek to resume shipments of some of the chips Huawei needs to make smartphones. However, 5G equipment is out of the question. At the same time, industry experts warn against exaggerated expectations on this issue, pointing out that such concessions are erroneous political decisions of the Trump administration.