American chipmakers resume business deals with Huawei despite US ban

Despite US President Donald Trump's directive to ban Huawei Technologies, some US firms found a loophole to still supply products to the embattled Chinese company. 

US companies resume business with Huawei

According to a news report from the New York Times, US chipmakers Intel and Micron were able to resume their business with Huawei, selling millions of dollars worth of products. 

Business as usual?

This was possible as they were taking advantage of how goods are labeled, arguing that not all products shipped by American companies are not always American-made. 

In May, Trump declared a national emergency against potential threats to information and communications technology and services, which affected Huawei. 

Its Department of Commerce followed suit as it included Huawei on a blacklist, hindering the firm to do business with American companies. It also put Huawei on its "Entity List", signaling the need for US firms to secure a special license to sell products to the Chinese company. 

Sanjay Mehrotra, chief executive officer of Micron, said that while they got confused given the order, forcing them to cease transactions with Huawei, the company decided to resume their deals after determining "that we could lawfully resume" some shipments. 

As we have discussed with the US government, it is now clear some items may be supplied to Huawei consistent with the entity list and applicable regulations, also said John Neuffer, the president of the Semiconductor Industry Association.

Source: CNET