As we already mentioned in a previous article, Trump’s government has been characterized by presenting troubles with technology from China. This issue came months ago, when the Donald Trump claimed that the Chinese government could be spying Americans through tech devices that are sent from China.
What is going on with Huawei? Under the same chance of Chinese spying, this brand was blacklisted in 2019. This means that the company is now unable to send its devices to the US. This was probably just the beginning of the modern tech war between both countries. The government executed many limitations and restrictions on this particular brand, but the problem here is that two giants which are AMD and Intel sell their chips to Huawei. This is mainly the cause of why the sales of these businesses decreased at an excessive point.
Huawei uses Intel and AMD’s x86 CPUs in its PCs and servers, and Intel’s Altera FPGA chips in its 5G base station. The principal idea of using American chips on Huawei's devices is because they are more powerful than the ones manufactured in Taiwan.
Fortunately, the US presented Huawei an opportunity to recover from damages, because they just approved a new license to both Intel and AMD. This new license was accepted by the US government and it establishes the allowance of both AMD and Intel to sell just certain types of chips to Huawei.
It looks more like this license could evade a significant impact on the chipmakers' sales because it would be affecting immediately their country's industries and consequently, their economy. However, the trade between US tech companies and Chinese tech companies mean a lot to the tech sector.