Unexpected developments between Intel and Huawei. Intel, which supplies laptop processors to the Chinese company, will lose one of its export licenses this year. This raises questions about the partnership between the two companies.
US will not allow Intel and Huawei deal
The million-dollar deal, first signed in 2019, allowed Intel to work with Huawei on processors and sell processors to the company. But it faced backlash from competitors and critics in the US. AMD, for example, tried and failed to revoke Intel’s license.
According to sources close to the matter, the Biden administration will probably not approve the renewal of the expired license. There is already a similar license agreement between Qualcomm and Huawei. Qualcomm does not expect its agreement to be renewed.
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The expiration of these licenses will prevent Huawei from supplying key hardware parts amid tensions between the US and China. It should be reminded that the company currently does not have access to Qualcomm chips with Android and 5G.
The future of such partnerships is under intense scrutiny by the US administration. Last year, a US trade official said that Huawei’s licensing policy was under review and that they would stop providing the company with American technology.
This uncertainty makes the two companies’ hundred million dollar supply deal even more pessimistic. If the deal is blocked, Intel will lose a major customer and Huawei will be deprived of computer processors.
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