Micron granted all requested licences to supply Huawei

Micron sign on side of building

US chip manufacturer Micron Technologies has revealed it has been granted all requested licenses to supply some of its products to Chinese tech giant Huawei.

The development will provide some relief for the firm, which has been struggling due to a slowing memory market, as well as the ongoing US-China trade disputes.

The market has struggled since Washington's decision to place Huawei, Micron's largest customer, on an "entity list" in May due to national security concerns – effectively preventing US manufacturers from supplying to it. Huawei has always maintained that its products pose a risk to US security, while a number of US companies have criticised the move due to the impact on their revenue.

In June, however, Micron said it had determined that some of its products could still be legally sold to Huawei despite the sanctions in place, although others did remain banned.

Last month, the US began resuming licences to allow businesses to ship to Huawei, with Micron now revealing it has been awarded all those it had requested.

"We applied for, and recently received all requested licenses that enable us to provide support for certain products... as well as qualify new products for Huawei's mobile and server businesses," Micron said.

Reduced access to the Chinese market has underpinned a turbulent year and a half for US chipmakers, with Micron predicted to hit a "cyclical bottom" in Q2 2020. However, the firm also told investors that it expects a recovery in the third quarter of 2020, once it has ensured its components are fully compatible with the latest Huawei products.

"We believe that we'll be able to get back to working with them and qualifying our products, and then within a few months we should be in a much better place - assuming of course that no changes occur in terms of the U.S. trade policy as it relates to Huawei," Sumit Sadana, chief business officer at Micron, told Reuters in an interview.

Idaho-based Micron forecast second-quarter revenue of between $4.5 billion and $4.8 billion, compared to analyst predictions of $4.78.

Daniel Todd

Dan is a freelance writer and regular contributor to ChannelPro, covering the latest news stories across the IT, technology, and channel landscapes. Topics regularly cover cloud technologies, cyber security, software and operating system guides, and the latest mergers and acquisitions.

A journalism graduate from Leeds Beckett University, he combines a passion for the written word with a keen interest in the latest technology and its influence in an increasingly connected world.

He started writing for ChannelPro back in 2016, focusing on a mixture of news and technology guides, before becoming a regular contributor to ITPro. Elsewhere, he has previously written news and features across a range of other topics, including sport, music, and general news.