China’s blacklisted telecom company Huawei has had license applications to buy chips for its developing auto component business approved by US officials, two Reuters sources familiar with the matter said. The licenses are purportedly worth hundreds of millions of dollars.
Huawei, the world’s largest telecommunications equipment maker, has been hobbled by trade restrictions imposed by the Trump administration on the sale of chips and other components used in its network gear and smartphones businesses. The Biden administration has been reinforcing the hard line on exports to Huawei, denying licenses to sell chips to Huawei for use in or with 5G devices.
But in recent weeks and months, people familiar with the application process told Reuters that the US has granted licenses authorizing suppliers to sell chips to Huawei for such vehicle components as video screens and sensors. The approvals come as Huawei pivots its business toward items that are less susceptible to US trade bans.