Huawei is allowed to use US chips again for car electronics

The US government has granted Huawei trading licenses after the electronics company for auto components is again allowed to buy and use chips from US manufacturers. This is reported by the Reuters news agency and relies on two insider sources. The Chinese company, which actually specializes in telecommunications, has been under a tightened technology embargo since mid-2020 in the course of the trade war between the USA and China: semiconductors were no longer allowed to be supplied to Huawei – a serious blow, as the embargo was not only on the cell phone supplier Qualcomm, but also affects the Taiwanese chip manufacturer TSMC.

As a result, Huawei’s smartphone sales slumped by around 40 percent in the fourth quarter of 2020, but the group had concentrated more on vehicle technology and autonomous driving. For this purpose, US companies are again allowed to deliver chips to China for displays and sensor control, for example.

So far, Biden had not only maintained the ban initiated by the Trump administration, but had tightened it. The loosening that has now become known does not affect the 5G mobile communications technology, which is seen as particularly critical, but there was harsh criticism of Biden from the political opponent. Republican Senator Tom Cotton said it was unacceptable for the Biden government to ease the pressure campaign against Chinese spy companies like Huawei.

On the other hand, chips for cars are not considered to be as sophisticated as telecommunication chips. But the now approved car chips could contain other components with 5G capabilities. The news site Capacity, which specializes in telecommunications, reported that the Chinese Huawei competitor ZTE was not on the US list of banned companies Qualcomm is even working with him on 5G chips.


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