Semiconductor Industry Association (SIA), an association that seeks to strengthen the US leadership in semiconductor manufacturing, design, and research has wrote to US Secretary of Commerce Wilburs Ross asking him to get sales approvals for Huawei. there were 130 permit applications, but none were approved.
Huawei is on the US entity list banning the sale of US companies, but SIA has requested exemptions when products do not affect national security, especially if there are foreign competitors who can deliver the products. Limited trading is allowed, but that concession expires on November 19th.
Huawei has a $ 70 billion acquisition budget, of which $ 15 billion is spent on semiconductors. Huawei spent $ 11 billion on US suppliers in 2018. It was the third largest buyer of US ICs last year, after Samsung and Apple.
The SIA warns that the profits of the US semiconductor industry will be affected if licenses are not issued. Broadcom cut its revenue forecast by $ 2 billion due to the trade war, and Qualcomm warned it would affect earnings.