Chipmaker Xilinx resumes some Huawei sales

US semiconductor company Xilinx Inc., said it has resumed some sales to Huawei Technologies Co. Ltd. but forecast current-quarter revenue below Wall Street estimates, citing the impact of US restrictions on selling to the Chinese telecommunications firm, reported Reuters.

Chief Executive Victor Peng said that Xilinx stopped all sales to Huawei in May when US restrictions took effect. Peng said that during the fiscal first-quarter ended June 29, Xilinx determined that some of its products, such as its older, 28-nanometer chips and some chips not designed for 5G gear, could legally could be sold to Huawei. Xilinx makes programmable chips that are used in data centers to speed up tasks like artificial intelligence work, as well as chips that are used in 5G telecommunications base stations.

Xilinx resumed shipping these chips and has also applied for licenses with the US Commerce Department to resume selling other products to Huawei. The company’s forecast sent the chipmaker’s shares down 5.78% to $125.50 in extended trading.