Intel has announced adjustments to its sales expectations for the current quarter following the implementation of new restrictions on semiconductor sales to the Chinese telecommunications company Huawei Technologies. This follows the Commerce Department's decision to revoke some export licenses to Huawei, as a spokesperson announced on Wednesday. Intel was informed on Tuesday that the licenses for sales to a customer in China had been revoked, according to a stock exchange filing.

The company now expects that revenue for the second quarter will fall below $13 billion, but remain within the previously forecasted range of $12.5 to $13.5 billion. Intel also reaffirmed its annual outlook, anticipating growth in revenue and profits.

The headline translates to English as:

"The news comes a day after a report by the Financial Times which stated that the Biden Administration has revoked licenses to sell chips to Huawei. Intel shares then fell by 2.2 percent on Wednesday."

US suppliers, including Intel and Qualcomm, had previously obtained permission to continue selling some chips to Huawei – including central processing units for laptops and older 4G generation chips for phones – even after the US placed the company on the so-called Entity List in 2019, making sales without an export license illegal.

These Licenses Allowed These Companies Continuous Revenues from China, Even as Technology Rivalry Between the US and China Intensified. Huawei Remains at the Center of Trade Conflicts Between the Countries, and US Restrictions on Both Access to the Latest 5G Chips from Qualcomm and Broad Restrictions for AI Chips from Nvidia Have Impacted the Company's Growth.

Qualcomm initially did not respond to a request for comment. Qualcomm Chief Financial Officer Akash Palkhiwala stated in May that the company does not expect revenues from Huawei for 2025, as the Chinese telecommunications company transitions to 5G chips and ceases the purchase of 4G chips, which Qualcomm was allowed to sell.

The heading translated to English could be:

"The recall follows the launch of Huawei's first laptops with AI capabilities last month that included Intel chips. This led to new demands from some U.S. lawmakers for a revocation of the licenses."

Beijing has also taken steps to restrict Intel's sales in China. Recently, telecom providers were told to stop using foreign chips by 2027, the Journal reported last month.