United States companies are trading with Huawei, despite sanctions

U.S. companies find ways around Trump’s Huawei blacklist

U.S. companies find ways around Trump’s Huawei blacklist

Several U.S. chipmakers are selling "millions of dollars" worth of products to Huawei, despite the Commerce Department barring United States companies from doing so, according to a report from New York Times.

US authorities have not yet commented on this issue. Others are not taking such a hard line stance because they are concerned with how the ban is affecting USA companies; after all, Qualcomm spent $11 billion on us sourced parts, components, and software in 2018. According to estimates, US chipmakers have sold components worth hundreds of millions of dollars to Huawei already.

U.S. chipmaker Micron has restarted some shipments to Huawei despite a ban on selling products to the Chinese firm.

Based in Idaho, Micron has resumed shipping memory chips to Huawei after it found a provision or say a loophole in the ban imposed by the Department of Commerce and the U.S. Government which released an "entity list" banning Huawei and 67 other companies from acquiring any U.S. based technology or goods without prior approval which in case of Huawei, is a NO on the face without any doubt.

"We don't customize products or do research for the military", said Song.

Many U.S. suppliers froze shipments to Huawei initially as lawyers were tasked with teasing out which products fell under the ban, and which did not, according to the NYT report.

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At the moment, the U.S. Commerce Department hasn't issued a statement on the matter yet, although a representative from the Semiconductor Industry Association reiterated that members are still committed to "rigorous compliance" with the law.

"SIA companies are committed to rigorous compliance with U.S. export control regulations".

The report, among other numbers you can check out at the source link, mentions how Huawei spent $11 billion on U.S. technology in 2018.

On May 15, Trump effectively banned Huawei with a national security order. He remarked that the company's future would be in the China market.

And on June 26, Japanese media Nikkei reported that Huawei was scrambling to find new suppliers for 15 key parts used to make its latest smartphone P30 Pro, which were USA -made.

Under the current ban, American companies may until mid-August to sell Huawei accessories for existing models. Over the longer term, SIA remains concerned restrictions on our ability to sell commercial products in major markets will erode the competitiveness of the USA semiconductor industry. The value of these parts make up about 16.3 percent of the phone's total costs. The research firm noted that the Asian suppliers may not be able to supply Huawei anymore, since some of the parts use USA technology in their production.

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