U.S. tech firms find ways to bypass Huawei blacklisting

Huawei MWC19
Huawei purchases $11 billion in technology from US companies each year, according to The New York Times. (Monica Alleven/FierceWireless)

Several U.S. chipmakers are selling “millions of dollars” worth of products to Huawei, despite the Commerce Department barring US companies from doing so, according to a report from New York Times.

 

Chipmakers such as Intel and Micron have reportedly found ways to avoid labeling some products as U.S.-made, NYT claims, allowing them to continue to supply Huawei with products without violating the Commerce Department’s order. It suggests the goods are produced overseas.

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The NYT report cites unnamed people with knowledge of the sales. They said the products began shipping to Huawei about three weeks ago.

 

The Commerce Department added Huawei to its entity list in May, which sent shockwaves throughout the tech industry. Many U.S. technology companies, including Facebook, Google and chipmakers Qualcomm and Intel, count Huawei as an important customer. Some have argued that the ban will hurt U.S. companies. Huawei purchases $11 billion in technology from US companies each year, according to NYT.

 

RELATED: Report: Quiet lobbying by U.S. chipmakers seeks to limit U.S. ban on sales to Huawei

 

After adding Huawei to the entity list, the Commerce Department’s Bureau of Industry and Security (BIS) said it would allow some companies to continue to do business with Huawei under specific conditions until August. But it has barred U.S. companies from selling components for future products to Huawei.

 

Many U.S. suppliers froze shipments to Huawei initially as lawyers were tasked with teasing out which products fell under the ban, and which did not, according to the NYT report. Micron CEO Sanjay Mehrotra told shareholders earlier this week that the company had resumed some of its shipments to Huawei after reviewing the entity list rules.

 

“However, there is considerable ongoing uncertainty around the Huawei situation,” Mehrotra said during the earnings call, according to a transcript provided by The Motley Fool. “Micron will continue to comply with all government and legal requirements.”

 

NYT reports the Trump administration is aware of the sales, but has not yet decided how to respond.

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