Huawei has been having a rough year so far, and some of its woes are trickling onto the camps of some of its partners.
The company’s US-based chip suppliers, Intel, Xilinx Inc and Qualcomm have seen their revenues plunge as Huawei phone sales take a hit. As such, the companies have discreetly begun to lobby the US Government to ease the ban on sales of components to the phone-maker.
According to a Reuters’ source, concerned executives from Intel and Xilinx Inc attended a meeting towards the end of May with the US Commerce Department to discuss a response to Huawei’s placement on the black list.
Some Silicon Valley giants such as Google and Microsoft have also joined in on the lobbying in light of the expiry of the temporary 90-day licenses on August 20. After this the companies are set to lose billions in potential revenue from Huawei. In 2018, Huawei bought components (hardware and software) worth US$ 11 Billion from several US companies.
The contents of the negotiations are not yet public, however Huawei insists it has not asked any of its US-based partners to lobby on its behalf.
Huawei’s VP of Public Affairs, Andrew Williamson said in an interview in Mexico, “They’re doing it by their own desire because, for many of them, Huawei is one of their major customers,” adding that the loss of the Chinese market would be ‘catastrophic’ for some of the companies.
Related article: Huawei smartphone sales drop 40% as US ban take toll
The Semiconductor Industry Association (SIA) confirmed there are ongoing talks between chip manufacturers and the administration; the talks begun soon after Huawei was blacklisted by the Trump administration in May. On the other hand, the Commerce Department said that such talks will have no influence over “law enforcement actions.”
“For technologies that do not relate to national security, it seems they shouldn’t fall within the scope of the order,” Jimmy Goodrich, vice president of global policy at SIA, explained. “And we have conveyed this perspective to government.”
While the West seeks to quash any influences of Huawei in its territory, the company has looked to solidify its position Africa where it is already well-established.
