Biden Administration Tightens Grip On China's Huawei, Revokes Key Export Licenses From US Chipmakers
Portfolio Pulse from Piero Cingari
The Biden administration has revoked export licenses for Intel Corp. and Qualcomm Inc., preventing them from supplying chips to Huawei. This decision is part of a broader U.S. strategy to address national security concerns related to Huawei's technological advancements and alleged cyber espionage activities. The move has led to a decrease in the share prices of Qualcomm and Intel, as well as a slight drop in the iShares Semiconductor ETF (SOXX). Other U.S. chipmakers like Broadcom Inc., Micron Technology Inc., Advanced Micro Devices, and Microsoft Corp., along with smaller firms such as Lumentum Holdings Inc. and Qorvo Inc., could also be impacted due to their business with Huawei.
May 07, 2024 | 8:23 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Intel's export license to Huawei revoked, impacting its ability to supply chips to the Chinese tech giant.
The revocation directly impacts Intel's business with Huawei, a significant customer, likely leading to a short-term negative impact on stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Qualcomm's export license to Huawei revoked, affecting its chip supply business with Huawei.
Qualcomm's ability to supply chips to Huawei directly impacted by the license revocation, likely causing a short-term decrease in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
iShares Semiconductor ETF (SOXX) sees a slight drop following the Commerce Department's decision.
The ETF, which includes semiconductor stocks like Intel and Qualcomm, experienced a decline, reflecting broader sector concerns.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70