When the U.S. Department of Commerce revoked Huawei export licenses from Intel and Qualcomm last week, it effectively barred the two companies from working with the Chinese high-tech giant. Intel subsequently cut its revenue projection by nearly $500 million for a single quarter. Qualcomm, on the other hand, said that it did not expect to receive product revenue from Huawei beyond 2024 anyway. Yet it will continue to obtain royalties from Huawei.
"On May 7, 2024, the U.S. Department of Commerce informed Qualcomm Inc. that it was revoking the Company's license to export 4G and certain other integrated circuit products, including Wi-Fi products, to Huawei Device Co., Ltd. and its affiliates and subsidiaries, effective immediately," a statement by Qualcomm in a filing with the Securities and Exchange Commission reads. "As disclosed in our Form 10-Q filed on May 1, 2024, we did not expect to receive product revenues from Huawei beyond the current calendar year. This revocation has moved that date to May 7, 2024, as we implemented measures to immediately comply."
