US reportedly eases chip export controls for China, good news for Huawei?


US indirectly eases chip export controls for China, and this could be good news for Huawei. This ultimate move of the Trump administration may act as a light of hope for the Chinese company amid ongoing struggles for advanced chipmaking tools.

The US Commerce Department has lifted the recently imposed chip export license rules for chip design software sales in China. Why and How? Let’s find out!

Washington and China have carried out a trade deal to ease certain chipset and tech restrictions for both countries. As a result, the US informed three of the leading chip design software providers to continue their businesses in China without licenses.

Synopsys, Cadence Design Systems, and Siemens AG are the three leading firms that recently received letters from the US authorities on this matter.

As per these letters, the three chipmakers can restore full access to their software and resume sales and support for Chinese clients without worrying about US licenses.

The news immediately increased the shares of these chipmakers by 3 to 6% on Thursday. Synopsys said it will restore the system access for Chinese users in three days:

“We are committed to ensuring continuity and support for our clients as we move forward.”

Benefit for Huawei?

Apart from the chip software design, Washington has also promised to ship ethane and jet engines to China. Looks like the US finally eases chip export controls for China, but how this step helps Huawei is still questionable.

It is so as the US hasn’t mentioned any relaxation for the banned Chinese companies yet. It has only opened the gates of the chip curb alleviation for certain firms.

Since Huawei has been on the US entity list for 5 years, it is doubtful, whether the foreign authorities will allow the three chipmakers to have trade deals with the Chinese firm.

Nevertheless, we can hope that this latest move from the US will be a new beginning for the growth of the Chinese chipset industry. How Huawei will take advantage of this situation would be worth looking at.

Huawei AI Chip

(Image Credits: Huawei)

[source]

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