U.S. companies continue to sell components to Huawei despite Trump ban: report

According to an article by the New York Times, U.Southward chip makers are still selling millions of dollars of components to Huawei despite U.S. President Donald Trump's ban.

While companies similar Google have claimed that Huawei'due south operating arrangement might pose more of a security threat, others in the industry, particularly the chipmakers, take been actively selling parts to the Chinese telecom giant under the existing ban.

Citing iv unnamed sources familiar on the sale, the NY Times writes that leading U.S. based bit makers such every bit Intel and Macro are believed to sell components without labelling it equally American-made.

Appurtenances made by the American companies overseas aren't considered American-made, and will non violate the existing U.S. trade regulation, the commodity noted. These strange made parts shipped to Huawei in early June, right after the initial wave of trade bans on the Chinese telecom giant.

Trump signed an executive order in May that would prevent U.S. businesses to piece of work with whatever strange company that poses a national security threat. Added to that list of companies is Shenzhen, Prc-based Huawei.

Intel and Micron take declined to comment.

However, Micron does admit that some of the components supplied to Huawei weren't be restricted by the government the regulation.

"We have started aircraft some orders of those products to Huawei in the terminal two weeks," said Micron CEO Sanjay Mehrotra during a conference call about quarterly results on June 25th. Mehrotra said that a subset of Micron products is not restricted for Huawei to purchase.

Kevin Wolf, a onetime U.Due south. Commerce Section official and partner at the law house Akin Gump, has informed several U.S. tech companies virtually the proper manner to supply Huawei under the existing ban.

Wolf said that chips manufactured outside of the United States do non autumn under the brake equally long as the American company does not provide instructions or after-sale service.

"This is not a loophole or an interpretation because there is no ambiguity. It's just esoteric," says Wolf.

In a Wall Street Journal commodity, Qualcomm has resumed shipments of radio-frequency components to Huawei afterward reviewing the rules from the Commerce Department.

San Jose-based technology manufacturer Flex Ltd. said that it also resumed 90 percent of its Huawei-related product after evaluating the business organization ties with the Chinese telecom giant. Phoenix-based chipmaker ON Semiconductor said that they are working with lawmakers and the Commerce Department to improve the situation with regards to Huawei.

Source: The New York Times, The Wall Street Journal