New reports suggest Huawei’s received approval on licence applications to buy chips from the United States — but it’s likely not for what you think.
The Chinese telecoms company have made headlines in recent years thanks to some of the harshest trade sanctions imposed on it by the US. Now, it’s receiving approval to start trading with certain sectors and businesses for the first time. And it’s to acquire microchips for its growing auto component business.
Yup. Huawei’s making cars with American microchips
The interesting part here is that the company still doesn’t have the approval to buy microchips from the US (or some adjacent global companies) for 5G mobile devices whatsoever. “The Biden administration has been reinforcing the hard line on exports to Huawei, denying licenses to sell chips to Huawei for use in or with 5g devices,” Reuters reports.
The chips it’s been approved for mainly includes “… vehicle components [such]as video screens and sensors.” According to the Reuters report, Huawei’s gearing up to pivot to any industry that the US will allow them under its trade restrictions. It’s pivoting toward vehicles in a bid to allow for more access to parts.
Vehicle parts aren’t really considered sophisticated either. Yeah, cars are smartphones on wheels, but they don’t need as much processing power as you’d find in a computer or a proper smartphone.