The US has cleared the way for Huawei to purchase chips for its auto component business, giving the company a bit of a reprieve.
Huawei has been reeling from sanctions and bans imposed by the US government and its allies over the last couple of years. The company is widely seen by intelligence agencies around the world as a threat to national security, thanks in large part to its close ties to Beijing. While the company’s woes began during the Trump administration, the Biden administration has continued applying pressure to the beleaguered company.
According to Reuters, the US has approved supplier licenses that would allow Huawei to purchase the chips it needs for the auto industry. While the US went to great lengths to cut the company off from semiconductors for its smartphones and networking equipment, automotive chips are much simpler and aren’t seen as representing the same threat to national security as the general purpose, high-tech chips used in electronics.
It remains to be seen if Huawei will be able to capitalize on this reprieve, but it’s certainly some of the best news — and biggest opportunity — the company has had in years.