Huawei may buy automotive chips from US companies, according to information released on Wednesday (25) by Reuters. US authorities have granted licenses worth hundreds of millions of dollars allowing the Chinese company to purchase semiconductors for car screens and sensors.
However, commercial restrictions on the purchase of processors used in telecommunications services, imposed by the Trump management and continued by the Biden government, remain in effect. The US fears that exports of chips for use in 5G devices could harm its homeland security and business interests in the world.
As a result, Huawei retreated from its dominant position in the smartphone market and sought new areas of growth. Automotive chips are considered unsophisticated, making it easier for the Chinese company to approve sales.
List of Dislikes
In 2019, Huawei was placed on a dislike list by the US Department of Commerce, which banned sales of US products and technology to the company without special licenses. Last year, US authorities increased the level of restrictions and began to limit the sale of chips made abroad with US equipment.
In order to survive in the market, Huawei sold part of its appliance manufacturing business, where it was dominant, while investing in new growth areas that were not yet fully mature, such as the automobile sector. The company’s result was achieved by this strategy and registered the biggest drop in revenue in its history in the first half of 2021.
The quest to limit Huawei’s growth in the telecommunications sector also involves pressure for other countries not to do business with the Chinese company. Recently, the US government admitted pressure on Brazilian authorities to prevent Huawei’s participation in the 5G auction.