What you need to know
- In spite of a trade ban by the Trump administration, a few U.S. companies resumed selling components to Huawei three weeks ago.
- Component sales to Huawei have reportedly totaled hundreds of millions of dollars in just three weeks.
- The companies are "lawfully" getting around the Trump ban by not labeling the components as American-made.
U.S. chipmakers are continuing to sell products to Chinese smartphone and telecommunications equipment maker Huawei, despite a ban issued by the Trump administration last month, according to a new report from The New York Times.
Citing four people with knowledge of the sales, the report says U.S. chipmakers such as Intel and Micron have found a way to get around the trade ban by not labeling the products as American-made. Goods that are produced overseas by American companies are usually not considered to be American-made. The companies began shipping components to Huawei about three weeks back and will help the Chinese company to continue selling its products such as smartphones and servers.
Since a complete sales ban of components to Huawei is expected to come into effect after mid-August, it is possible that a certain percentage of the components shipped to Huawei could be for use in the company's future products. According to estimates, U.S. chipmakers have sold components worth hundreds of millions of dollars to Huawei already.
Micron CEO Sanjay Mehrotra had mentioned during an earnings call on Tuesday afternoon that the company had ceased shipments to Huawei after it was put on the Entity List by the Commerce Department. However, Micron resumed sales two weeks ago after it reviewed the entity list rules and "determined that we could lawfully resume" shipping a few products.
The Trump administration, claims the report, has been aware of the sales but most officials are unsure about how they should respond. "As we have discussed with the U.S. government, it is now clear some items may be supplied to Huawei consistent with the entity list and applicable regulations," wrote John Neuffer, president of the Semiconductor Industry Association in a statement on Friday.
Each company is impacted differently based on their specific products and supply chains, and each company must evaluate how best to conduct its business and remain in compliance.
We may earn a commission for purchases using our links. Learn more.
From the Editor's Desk: Navigating the Chromebook crunch of 2020
Chromebooks are wonderful little laptops for a great many people, but they're especially well-suited to children. Now if only retailers could keep them in stock this back-to-school season.
Here's every U.S. city with 5G coverage right now
5G deployment is moving fast and the list of cities with coverage is growing all the time. See if your U.S. city has coverage yet by Verizon, T-Mobile, or AT&T.
It's time to stop using SMS for two-factor authentication
Not all 2FA is equal. Using SMS to get a code might not be "better than nothing" after all.
Snag one of these cases and protect your P40 Pro in style
Did you just pick up the new Huawei P40 Pro, but aren't sure how you want to keep it safe from when "life" happens? We've rounded up the best cases and there's an option available for just about everyone.