In a recent financial filing, Intel revealed that it anticipates its revenue for the second quarter of 2024 to be affected by new export restrictions imposed on China. The U.S. Department of Commerce announced on Tuesday that it had revoked certain licenses for chip exports to the sanctioned Chinese company, Huawei.

Although Intel did not specifically mention Huawei in its filing, it acknowledged that the Commerce Department's license change would have an immediate impact on the export of "consumer-related items to a customer in China." The company expects its revenue to fall within the original range it outlined, which is between $12.5 billion to $13.5 billion, but below the midpoint.

Huawei has been on a U.S. trade blacklist since 2019, which has restricted its ability to purchase parts from U.S. companies without government approval. The strained trade relations between the U.S. and China, along with the competition to advance in cutting-edge technologies, have intensified over the years. The U.S. has implemented rules aimed at limiting the flow of advanced chips, particularly those used for generative AI, to China.

Intel has recognized both geopolitical and trade tensions between the U.S. and China, as well as rising tensions between mainland China and Taiwan, as potential risks to its business. Qualcomm, another chip supplier to Huawei, had previously warned that it expected to cease receiving product revenues from Huawei beyond the current calendar year due to reports suggesting the Commerce Department was contemplating cutting off new licenses for sales to the Chinese company.

The impact of these export restrictions on Intel's revenue underscores the ongoing challenges faced by major tech companies operating in this increasingly contested space. As the race for technological dominance continues, businesses must navigate complex geopolitical dynamics while complying with export control regulations.