The US government has approved license applications for Huawei to purchase chips for its growing auto component business, according to a report by Reuters on Wednesday.

  • Huawei, the world’s largest telecommunications equipment market, has been hurt by trade restrictions imposed by the Trump administration on the sales of chips and other smartphone business elements.
  • The current administration has been reinforcing the hardline stance on exports to Huawei, denying licenses to sell chips to Huawei for use in or with 5g devices.
  • But in recent weeks, the U.S. has approved licenses authorizing suppliers to sell chips to Huawei for such vehicle components as video screens and sensors.
  • The approvals come as Huawei shifts its business towards items that are less susceptible to U.S. trade bans.

Auto chips are considered less sophisticated, lowering the bar for approval. The U.S. government was granting licenses for chips in vehicles that may have other components with 5g capability.