Intel Revises Revenue Guidance After US Slaps New Restrictions on Chip Sales to China

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Key Takeaways

  • Intel said that it has revised its current-quarter gross guidance aft immoderate of its export licenses aimed astatine sending its chips to a Chinese institution were revoked by nan U.S. Department of Commerce.
  • Intel didn't sanction nan Chinese firm, but nan Financial Times reported that nan U.S. company, and besides Qualcomm, were told to instantly extremity income to Chinese telecom elephantine Huawei.
  • The revoked licenses people nan latest tit-for-tat pinch China and travel aft Huawei developed an precocious smartphone.
  • Intel shares were dow astir 3% successful early-afternoon trading and were nan biggest decliner among Dow Jones Industrial Average stocks.

Intel (INTC) said Wednesday that it has revised its gross guidance aft nan U.S. Department of Commerce revoked definite licenses for exports of definite items to a Chinese company.

In a filing, nan spot elephantine said it had receiving a notification from national regulators that they were “revoking definite licenses for exports of consumer-related items to a customer successful China, effective immediately.”

Intel said Wednesday that because of nan directive from nan Commerce Department, it anticipates existent 4th gross would beryllium beneath nan midpoint of nan original scope of $12.5 cardinal to $13.5 billion. It added that it continues to spot full-year gross and net to beryllium higher than successful 2023.

Intel shares were down 2.9% astatine $29.79 successful early-afternoon trading and were nan biggest decliner among members of nan Dow Jones Industrial Average.

Export Licenses to Huawei Reportedly Revoked

Intel didn't disclose who nan Chinese institution was, but the Financial Times reported Wednesday that nan Biden management had revoked export licenses that allowed some nan U.S. patient and home rival Qualcomm (QCOM) to proviso chips to Chinese telecom-equipment shaper Huawei.

The Financial Times reported that nan move by nan US Department of Commerce affects nan proviso of chips for Huawei’s laptop computers and mobile phones. The move comes amid U.S. siren astatine Huawei’s expertise to create precocious chips, arsenic shown successful the Mate 60 Pro smartphone released successful August, despite sweeping export controls introduced successful 2022. 

The revoked licenses are nan the latest tit-for-tat betwixt Washington and Beijing complete nan waste of precocious semiconductors to China by U.S. firms. The Biden Administration has been putting limits connected nan waste of specified chips, citing nationalist information concerns, while past month, China reportedly told its telecom companies to shape retired nan usage of overseas semiconductors.

Source investopedia