Monday, 18 January 2021 10:49

US revokes some licences issued for sales to Huawei, to deny others Featured

US revokes some licences issued for sales to Huawei, to deny others Pixabay

In its last days, the Trump administration has revoked licences issued to some US companies to sell goods to Huawei, a report claims, with Intel and Japan flash memory maker Kioxia Corporation, formerly known as Toshiba Memory Corporation, among those who had licences revoked.

Reuters reported that a number of companies had been informed that their requests for licences would be rejected.

The news agency cited an email sent by the Semiconductor Industry Association, a US lobby group, sent to its members as its source for the information.

Eight licences issued to four companies had been revoked, it said.

In May 2019. the US placed Huawei on its Entity List, an act that prevented it from obtaining US products without a licence from the Commerce Department. But Huawei was able to get what it needed from branches of American companies based outside the US.

In May 2020, the US put in place further restrictions to cut off Huawei's supply of semiconductors which it gets mostly from Taiwan Semiconductor Manufacturing Company. This was done through the Foreign Direct Product Rule that makes it necessary for any company — American or foreign — that sells American products or those made using American technology to require a permit before selling to Huawei.

In September, the US imposed sanctions on China's biggest maker of semiconductors, Semiconductor Manufacturing International Corporation, claiming it posed an "unacceptable risk" of its products being diverted to "military end use".

The report said applications for about 150 licences for products worth US$120 billion were pending due to disagreement among US agencies as to what could be allowed.

Plus, another US$280 billion worth of goods had yet to be dealt with, the report said.

The decisions to reject and revoke licences were taken in meetings that began on 4 January. Licences to sell any products linked to 5G had been turned down and the revoked licences were meant to bring everything in line with this rule.

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Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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