Qualcomm Dips on Report That US Is Tightening Chip Export Rules

Nick Turner, Bloomberg News

Qualcomm headquarters in San Diego, California, US, on Monday, Oct. 30, 2023. Qualcomm Inc. is scheduled to release earnings figures on November 1. Photographer: Ariana Drehsler/Bloomberg , Bloomberg

(Bloomberg) -- Qualcomm Inc. slipped in New York trading Tuesday after the Financial Times reported that the US is revoking export licenses to sell chips to Huawei Technologies Co., a move that also will affect Intel Corp.

The step by the Commerce Department would restrict the supply of chips for Huawei’s laptops and phones, according to the newspaper, which cited unidentified people familiar with the situation. The agency confirmed to the Financial Times that it had revoked the licenses, but didn’t name the companies affected.

The move would add to the Biden administration’s crackdown on chip sales to China. Huawei has been blacklisted by the US government, and Qualcomm said last week that it only sells the less-advanced 4G phone parts to the company — in line with US trade restrictions. Qualcomm already indicated it expects that business to wind down to nothing next year.

Qualcomm shares fell as much as 1.5% to $179.22 on Tuesday, though they largely recovered. Intel was little changed at $30.81.