Trump administration banned the sale of US technology to Chinese tech giant Huawei in May, but US companies, including Intel and Micron, sell computers chips to Huawei again, according to a report in New York Times.
Micron's CEO Sanjay Mehrotra confirmed on a Tuesday earnings call that the company, headquartered in Idaho, but with global operations, started sending orders to Huawei again over the past two weeks. Intel refused to comment.
Micron is the United States largest manufacturer of data storage drawers. Intel is the country's largest producer of semiconductor chips. China's Huawei is the second largest phone manufacturer on the planet.
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With a backdrop of an intensifying trade war and accusations of espionage and national security threats from the Americans, the Commerce Department put Huawei on the "Entity List" last month, banning US companies selling specific types tech and information to the Chinese company.
A key takeaway from the Times report is that no one is clearly what to do or how you feel about it. The companies are said to have halted the entire sale to Huawei for a while before their lawyers decided they could still do something about the products not being considered the US team. The Trump administration reportedly knows the sales, but is divided on how to respond. The White House did not immediately respond to our request for comment.
The Ministry of Commerce itself cannot be quite clear: the report also states that the company is selling the agency. The DOC did not respond to a request for comment.
The Semiconductor Industry Association, which counts both Intel and Micron as members, believes sales can still be made from US companies to Huawei.
"As we have discussed with the US government, it is now clear that some items can be delivered to Huawei in accordance with the Entity List and applicable regulations, the company said in a statement on Friday." Each company is affected differently based on their specific products and supply chains, and each company must evaluate how best to run its business and remain consistent. "
Meanwhile, Chinese companies believe that it is impossible to meet Chinese government mandates without US technology signals, depending on National Partners are all major corporations in this globalized world.
"If we lose access to US software or can no longer get updates, our chip development will be a dead end," a leading Chinese artificial intelligence chipmaker reported told the Nikkei Asian Review.
New sales news comes just a few hours after FedEx has filed a lawsuit against the merchant The freight giant claims that it is "almost impossible" for a shipping company to polish each package it handles.
Huawei did not immediately respond to a request for comment.