Chip suppliers ask US authorities to relax ban on working with Huawei

US chip makers Qualcomm, Intel and Xilinx are lobbying for the US Department of Commerce to relax the ban on working with the Chinese company Huawei. Reported by Reuters.
Three of these companies were directly affected by the blacklisting of Huawei in the United States, since they supplied microchips to the electronics manufacturer.
The Commerce Department announced the decision to blacklist Huawei in mid-May. This meant that working with a Chinese corporation and several dozen associated legal entities of a US company can only with the express permission of the US government. Such a move in Washington was explained by the fact that working with Huawei is a threat to the national interests of the country and its security.
In 2018, Huawei purchased parts for $70 billion from partners. Of these, $11 billion relates to purchases from American companies, including chip manufacturers.
Shares of chip manufacturers began to decline in April-May, when the US government only started talking about a ban. Qualcomm shares during this time fell by 20%, the same was the fall of Intel shares.
Last week, the financial indicators for the past quarter revealed another major supplier of Huawei - Broadcom. According to the report, profits fell by 81%, annual sales decreased by 10%. According to company forecasts, in 2019 the situation with Huawei will take away about $2 billion from its sales.

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