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HUAWEI can now buy chips from the U.S., but for its vehicle business

HUAWEI and the United States don’t really have a good relationship. The company was classified as a “national security threat” last year and was accused of installing a data backdoor. But things seem to be getting better for HUAWEI, as reported by Reuters. The United States officials have approved license applications for China’s blacklisted telecom HUAWEI to buy chips for its growing auto component business from the States.

HUAWEI sees the car business as one of the important verticals. Even though the company has entered “survival” mode, the company has seen enormous growth in the automotive sector. Today, the United States government authorized some suppliers to sell chips to HUAWEI for vehicle components such as video screens, sensors, and chips. The report says that the chips have 5G support.

“The government is granting licenses for chips in vehicles that may have other components with 5G capability.”

“Not everybody is a fan,” as the report says. Republican Senator Tom Cotton, who’s been critical of HUAWEI before, said “it’s unacceptable for the Biden administration to ease the pressure campaign against Chinese spy companies like HUAWEI.” In a statement to Reuters, Senator Marco Rubio called the move “yet another example of President Biden’s failure to protect America’s economic and national security.”

Though the US officials continue to says that government continues to consistently apply licensing policies “to restrict HUAWEI’s access to commodities, software, or technology for activities that could harm U.S. national security and foreign policy interests.”

Richard Barnett, a chief at global electronics consultancy Supply Frame, says HUAWEI is in the “early innings” of trying to invest in the $5 trillion automotive markets. “Cars and trucks are now computers on wheels,” said Barnett, “That convergence is what’s driving HUAWEI’s strategic focus to be a bigger player in that area.”

An engineer by degree, news reporter by profession, and an avid sports lover. You’ll find me scrolling Football Twitter when I’m not writing about cutting-edge technology. Have a tip? Noted a mistake? You can reach out using the email given below.

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