AMD’s License Canceled While Intel Dodges “US Regulations” Bullet, Will Continue To Supply Chips To Huawei For Now

14.03.2024 - 13:19 / wccftech.com / Muhammad Zuhair

Intel has managed to secure itself from another "wave" of US regulations, as the firm won't face trouble selling its CPUs like AMD to Chinese-sanctioned firms like Huawei.

AMD Reportedly Filed For Revoking Intel's "Exclusive" License, Claiming It Was An Unfair Business Practice

Intel has managed to dodge a vast bullet coming their way that would've potentially led to losses of millions of dollars, but it seems like the problem is gone for now. Reuters reports that Intel won't face new prohibitions by the US Government to sell its CPUs to the Chinese firm Huawei, as previously, the Trump administration granted the firm an "exclusive license," which seems valid for now. Interestingly, this demand for a ban on Intel from selling its CPUs in China came from AMD, which sees it as an unfair business practice, prioritizing one company over the other.

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Unlike Intel, AMD isn't allowed to sell its CPU to giant Chinese tech companies, which forced the firm to call for unfairness. AMD applied for a similar license under the Biden administration in 2021, but the firm hasn't received any response to their request, which has led to substantial financial losses.

It is reported that after the firm was barred from selling its chips to Huawei, a significant drop was seen in AMD's chips in Huawei's notebook, from 47.1% in 2020 to 9.3% in the Q1 2023. In parallel, however, Intel managed to gain a larger share in Huawei's notebooks, now reaching up to 90.7%, which shows how big of an impact AMD has witnessed with the unfair licensing terms.

AMD says that the new US policies have resulted in a gigantic $512 million loss, a massive value for them, as the loss only amounts to the CPU segment. While we are unaware of the reason behind Intel getting the advantage over AMD, it could probably be because of how "compliant" Intel has been with the US Government in recent times, as the firm has been heavily involved in setting up semiconductor facilities in the country, along with being a primary beneficiary of the $52 billion CHIPS Act as well.

It is expected that Intel won't receive a license renewal this time, ultimately closing the debate here, but the financial losses experienced by AMD are indeed unprogressive for the firm and could hurt them in the long run.

News Source: Reuters