NVIDIA is in big trouble after the US government’s draft plans to extend the sanctions it maintains on Huawei.
In accordance with ReutersThe report even explicitly refers to NVIDIAnoting that “it will have a big economic impact” on the company.
bad news
The Joe Biden administration has considered limiting the items it allows to ship to US companies. Huaweia company that has been on the U.S. trade blacklist since 2019 but continues to receive billions in goods from the U.S. as part of a special plan implemented by the Donald Trump administration.
However, with a draft submitted to the outlet, the now “proposed 2023 (Department of Commerce) License Amendment is likely to have a large economic impact on NVIDIA”, referring to the company’s “unfinished license cost”.
The document shows that the Biden administration is trying to assess the impact on US companies of policy changes proposed Huawei before introducing new rules that could affect annual revenue streams.
A source in the state structure noted that the preliminary draft “was not approved in this form.” The government “has written and agreed upon several reports on the matter based on various contingencies that draw very different conclusions,” he said.
more consequences
Another company that will have a moderate impact on its economy is Qualcomm.
The report stated that Qualcomm likely to suffer from the “moderate economic impact” of the policy change. Essentially, loss of access to modem chips Qualcomm would have a greater impact on Huaweithe report says as the Chinese giant “relies heavily on modem chips from Qualcomm to support its smartphone offering.
Huawei he was blacklisted in 2019 due to concerns that he might be spying on Americans and allegations of intellectual property theft and sanctions violations. The US requires suppliers to obtain a special license, which is usually denied when they sell US goods to listed companies. But the Trump administration has adopted a more lenient policy towards huawei, by blocking them from accessing 5G chips but allowing them to supply the company with other goods such as 4G chips.
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I am Ben Stock, a passionate and experienced digital journalist working in the news industry. At the Buna Times, I write articles covering technology developments and related topics. I strive to provide reliable information that my readers can trust. My research skills are top-notch, as well as my ability to craft engaging stories on timely topics with clarity and accuracy.