US chipmakers are lobbying to reduce the Huawei ban

The trade war between US and Huawei has been going on for a while now. Huawei has been losing customers and their reputation due to the ban enforced by the Trump administration. However, the good thing is that Huawei is not alone in the battle as US chipmakers are quietly lobbying to reduce the ban.

According to a report published by Reuters, US chipmakers including Intel and Qualcomm are pushing hard to make sure Huawei’s ban is lifted or at least is reduced. The representatives from Intel and Xilinx Inc attended a meeting in late May with the Commerce Department to discuss the future of Huawei and the response to the blacklist by the government. On a separate occasion, Qualcomm is pressing the Commerce Department over the issue, four people said. The chipmakers argued that Huawei’s use of components to build hardware doesn’t pose a security risk to the company.

In an interview, Andrew Williamson, vice president of Huawei’s public affairs said that the company hasn’t asked anyone to lobby on their behalf.

They’re doing it by their own desire because, for many of them, Huawei is one of their major customers.

– Andrew Williamson

According to a report, Huawei spent $70 billion on hardware last year, of which $11 billion went to US-based companies like Qualcomm and Intel. The Semiconductor Industry Association (SIA) is also working with the government to put the point forward on behalf of all the companies.

For technologies that do not relate to national security, it seems they shouldn’t fall within the scope of the order. And we have conveyed this perspective to government.

– Jimmy Goodrich, vice president of global policy at SIA

The Commerce Department did give Huawei temporary reprieve to buy hardware and components from the US companies to provide after-sales support to its customers. Unfortunately, the Trump administration is still not ready to allow Huawei and is gunning for the ban of other Chinese companies as well.