Intel expects revenue blow after US blocks chip sales to Huawei

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Intel expects new export restrictions to China to impact its revenue for the next quarter, according to a new financial filing.

The US Department of Commerce said Tuesday it had revoked certain licenses for chip exports to sanctioned Chinese company Huawei. Intel said in its filing that the Commerce Department informed it Tuesday of the license change, which it said impacted the export of “consumer-related items to a customer in China, effective immediately.” Intel did not list Huawei by name in the filing.

Intel said its revenue for the second quarter of 2024 will still fall within the original range it outlined of $12.5 billion to $13.5 billion but below the midpoint.

Huawei has been on a US trade blacklist since 2019, limiting its ability to buy parts from US companies without the government’s approval. Since then, tensions between the US and China and the race to advance in cutting-edge technology have only intensified, especially with the rise of generative AI. The US, for example, has created rules meant to restrict the flow to China of advanced chips that can be used for AI.

Intel lists “geopolitical and trade tensions between the US and China” as well as “rising tensions between mainland China and Taiwan” as risks to its business. Qualcomm also supplies chips to Huawei and previously warned that it does “not expect to receive product revenues from Huawei beyond the current calendar year,” given reports at the time that the Commerce Department was considering cutting off new licenses for sales to Huawei.

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