The inclusion of Huawei in the list of entities of the US Department of Commerce and the resulting restrictions on cooperation with the Chinese giant made it significantly more difficult for US-based companies to do business with Huawei. However, it did not make it completely impossible, as companies could apply for special licenses. Micron was one of them and is now able to work with Huawei again despite the US restrictions.
This is good news for Huawei and Micron
Although more than 160 companies applied for licenses, it took a long time to obtain them. Recently we saw Huawei’s laptops return to the Microsoft Store, and yesterday Micron announced during a phone call that it is one of the first US companies to have recently obtained the necessary licenses and that they can resume sales of various types of products to Huawei.
Due to Export Administration regulations and entity list restrictions imposed on Huawei, companies that develop and manufacture products in the U.S. can no longer sell them to Huawei. As a result, companies such as Intel, Google, Microsoft, Micron and many others have had to stop working with their Chinese partner, which has had a dramatic impact on their business, as the Chinese telecom giant is clearly a major customer that buys a large number of hardware and software products.
Micron’s statements:
“As disclosed above, we continue to supply some products to Huawei that are not subject to export administration regulations and entity list restrictions. We have recently requested and received all requested licenses that will allow us to support these products and qualify new products for Huawei’s mobile phone and server business.”
The receipt of these licenses is a positive development and we are grateful to the U.S. Administration for approving these licenses.
Prior to receiving these licenses, restrictions in the Entity List severely limited our ability to qualify new products at Huawei. While we can now qualify new products with Huawei’s mobile and server business, it will take some time before the qualification is completed and contributes to revenue. Therefore, we do not expect these licenses to have a significant impact on our revenues in the next two quarters.
This is good news for Huawei and Micron, who are slowly regaining their position, albeit in a way that is strongly controlled by the US government.