The United States has approved hundreds of millions of dollars worth of license applications for suppliers to sell chips to Huawei for automotive components such as video screens and sensors, two people familiar with the matter said, according to Reuters.

The Huawei spokesperson declined to comment on the issue and said, "We are positioning ourselves as a new parts supplier for smart connected cars, and our goal is to help original equipment manufacturers build better cars."

It is reported that in 2018 Huawei made it clear that it does not build cars but helps car companies build good cars. Previously, Xu Zhijun, vice chairman and rotating chairman of Huawei, said that Huawei plans to cooperate with three car companies to create three automotive sub-brands.

Huawei is one of the world's largest manufacturers of smartphones and network equipment, and it is a leader among China's emerging competitors in telecommunications, electric vehicles, and renewable energy.

On September 15, 2020, a new U.S. ban on Huawei went into effect. Manufacturers such as TSMC, Qualcomm, Samsung, SK Hynix, Micron, and others stopped supplying Huawei unless under special permission. Companies that wish to continue doing business with Huawei must first obtain a license from the U.S. government.

Previously, chip giant Qualcomm had been granted a license to sell 4G chips to Huawei. In addition to Qualcomm, Intel and AMD have received permits from the U.S. government to supply computer and server processors to Huawei.