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In a great relief to Chinese tech giant Huawei, the United States now allows more and more chipset makers to supply components to the China-based company, as long as they are not used for the 5G business.
A new report from the Financial Times indicates that this could offer a potential lifeline for Huawei, as sanctions imposed on companies threatened the giant’s survival less and less.
Huawei’s smartphone business, which is the worst hit area for the company, now has a chance to bounce back. The report indicates that the license request to supply components to Huawei is approved if the company demonstrates that the technology is not 5G compliant.
One of the executives of an Asian semiconductor company has told FT that chips for mobile devices are not a problem, adding that the company is optimistic about obtaining a license to continue doing business with Huawei.
In an apparent trade war between the United States and China, the United States put Huawei on the Entity List in May of last year, effectively prohibiting the company from doing business with US-based companies or companies that deal with American technology. without a special United States license
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A couple of months ago, the restrictions were tightened when the United States banned the supply of chipset and technology to Huawei. While it stopped the supply of chips to Huawei, the ban also proved detrimental to the semiconductor industry as a whole, as suppliers anticipate billions of dollars in losses.
However, in recent times, more and more companies are obtaining a license to do business with the Chinese giant. Samsung Display recently received a green signal to provide OLED panels to Huawei, and prior to that, Intel had confirmed that it received approval to supply chips.
Japan-based Sony and California-based China-owned OmniVision are said to have also received approval to supply CMOS image sensors used in smartphone cameras.
According to the report, more than 300 companies, including companies such as Samsung Electronics, Qualcomm, MediaTek, among others, have applied for a license to do business with Huawei and are expected to obtain approval in the coming weeks or months.
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