US-China tech war: Intel expects revenue to fall ‘below midpoint’ projections after Huawei ban
- On Tuesday, the US revoked licenses allowing Huawei, a Chinese telecoms giant blacklisted by the US, to buy semiconductors from Intel and rival Qualcomm
- Huawei has been tangled up in a web of US restrictions for years in response to concerns its technology could be used by Beijing as a spy tool
Intel expects second-quarter revenue to fall below the midpoint of previously issued projections because of a new US ban on chip exports to Huawei Technologies Co.
Revenue will remain within the previously guided range of US$12.5 billion to US$13.5 billion, Intel said in a statement Wednesday, “but below the midpoint”. The company said it continues to expect revenue and earnings per share to grow in 2024 from a year earlier.
On Tuesday, the US revoked licenses allowing Huawei, a Chinese telecommunications giant blacklisted by the US, to buy semiconductors from Intel and rival Qualcomm Inc., according to people familiar with the matter, further tightening export restrictions against the Chinese telecoms equipment maker.
Withdrawal of the licenses affects US sales of chips for use in Huawei phones and laptops, said the people, who discussed the move on condition of anonymity.
While the decision may not affect a significant volume of chips, it underscores the US government’s determination to curtail China’s access to a broad swathe of semiconductor technology.
