US Companies Lobbied The US Government

- Jun 18, 2019-

According to a Reuters report on June 17, some sources said that Qualcomm, Intel, Xilinx and other US chip suppliers are quietly lobbying the US government to relax its sales ban on Chinese technology company Huawei.

According to people familiar with the matter, Intel and Xilinx executives met with the US Department of Commerce at the end of May to discuss Huawei's blacklisting. These companies believe that Huawei's sales of products such as smartphones and computer servers use common components and are unlikely to cause security concerns like 5G network devices. "This is not to help Huawei, this is to prevent damage to US companies."

Qualcomm also pressured the US Department of Commerce on this matter, hoping to continue to ship chips to Huawei for common devices such as mobile phones and smart watches.

According to the data, about $10 billion of Huawei's $70 billion in parts purchased in 2018 went to US companies such as Qualcomm, Intel and Micron.

The American Semiconductor Industry Association acknowledged that it arranged consultations between the companies and the US government to brief government officials on the impact of the ban on these companies. “Technologies that are not related to national security do not seem to fall within the scope of the ban. We have already communicated this view to the government.”

Liang Hua, chairman of Huawei, revealed earlier this month that Google also advocates continuing to sell hardware, software and technology services to Huawei.

Currently, Intel, Xilinx and Qualcomm have declined to comment on the matter.

Andrew Williamson, vice president of public and government affairs at Huawei, said in an interview that there is no special request for anyone to lobby the US government on behalf of Huawei. "They did this because they wanted it, because Huawei is one of their main customers." He also said that chip makers also know that severing relations with Huawei will bring them "catastrophic" consequences.