Trump Criticizes Huawei Again Just 3 Days Before Leaving Office

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] U.S. President Donald Trump has once again targeted Huawei just three days before leaving office. However, it remains uncertain whether this decision will be fully implemented.

On the 17th (local time), according to major foreign media citing the U.S. Semiconductor Industry Association, the Department of Commerce on the 15th rejected a significant number of Huawei export requests and indicated that it might revoke already granted licenses.

The Trump administration notified Huawei suppliers, including U.S. semiconductor chip manufacturer Intel, of the cancellation of delivery permits.

The Department of Commerce did not specify which types of chips were banned, but the industry expects that key chips related to 5G are the targets.

Major foreign media reported, "One or more licenses currently in progress for export to Huawei have been canceled," adding, "So far, eight licenses from four companies have been revoked."

Among the licenses banned by the U.S. are those involving Intel, one of the largest semiconductor companies in the U.S., and Kioxia, a Japanese flash memory manufacturer.

The Trump administration has imposed sanctions on Huawei throughout its tenure to curb China's technological rise. In particular, in May 2019, Huawei was blacklisted for national security reasons, restricting the supply of U.S. products and technology. Consequently, American companies such as Qualcomm and Intel, as well as all semiconductor companies worldwide that partially use U.S. technology, have been required to obtain prior approval from the Department of Commerce to do business with Huawei. This effectively forced semiconductor manufacturers worldwide to sever ties with Huawei. Then, in November last year, partial permissions were granted to companies like Qualcomm to supply LTE chips excluding 5G, but strong sanctions were reinstated afterward.

However, with only three days left before President Trump's term ends (local time), it is uncertain whether this decision will be executed. Companies that receive a denial notice from the U.S. government have 20 days to submit their opinions to the Department of Commerce, which must then notify any changes within 45 days. Afterward, companies have another 45 days to appeal the Department of Commerce's decision.

Meanwhile, Intel and Kioxia have not made any particular statements.