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Intel and Qualcomm will feel the pressure after China license cancellation

Chipset suppliers – Intel and Qualcomm – are expected to feel the pressure after their export licenses to China were cancelled.
Kazakhstan mobile networkIntel said its sales would suffer after the United States revoked some of the chipmaker’s export licenses for a customer in China.

Intel did not disclose the name of the Chinese customer whose licenses were canceled in its filing with the Securities and Exchange Commission.

Reuters had reported on Tuesday that the United States had revoked licenses that allowed companies including Intel and Qualcomm to ship chips used for laptops and handsets to sanctioned Chinese telecommunications equipment maker Huawei Technologies.

The industry estimates that Intel supplied its new Core Ultra 9 processor to Huawei to make the MateBook X Pro, its first AI-enabled laptop, in April.

Intel said it expects revenue for the second quarter to remain in the range of $12.5 billion to $13.5 billion, but below the midpoint.

Qualcomm announced on Wednesday that one of its export licenses for Huawei had been revoked.

“Huawei is a threat,” Commerce Secretary Gina Raimondo told Reuters on Wednesday after a congressional hearing, adding that the move did not constitute a policy change.

“Maybe we focus more on AI. And so when we learn more about the capabilities of AI, that’s when we need to act,” she said. “So if a chip that we previously licensed, for example, we now find out had AI capabilities, we’re going to revoke the license.”

China’s Foreign Ministry, which has criticized all efforts by the United States to crack down on technology exports to China, said in a statement that it opposed the move and that the United States ” “extended the concept of national security too far and abused export controls to suppress.” Chinese companies without justification.