Sanjay Mehrotra, CEO of Micron Technology, the largest computer memory chip manufacturer in the United States, said on June 25 that it had partially resumed supply to the Chinese technology company Huawei.

According to Bloomberg reported on June 26, Sanjay Mehrotra, CEO of Micron Technology , the largest computer memory chip manufacturer in the United States, said on June 25 that it has partially resumed providing services to Chinese technology company Huawei Supply. Micron has determined that these supplies do not conflict with the US ban on Huawei. This caused Micron's U.S. shares to soar 11% in after-hours trading and led to gains in other chip stocks.

Mehrotra said in a conference call on the 25th that the company had studied and confirmed that it could sell "some" products to Huawei that were not subject to the ban, and had started shipping them in the past two weeks. "We believe that we can legally resume shipments of some existing products because they are not within the scope of export management regulations and are not subject to the restrictions of the entity list."

The U.S. Department of Commerce added Huawei to the export ban in May, and Huawei is not allowed to purchase products for Micron has since stopped all shipments to Huawei to produce U.S. components for new products. According to data from Bloomberg, Huawei is one of Micron’s largest customers, and approximately 13% of Micron’s annual revenue comes from sales to Huawei. Kevin Cassidy, an analyst at

investment institution Stifel Nicolaus Co., said that there is a loophole in the U.S. export ban. If the U.S. technology used in the chip does not reach 25%, it will not be subject to the ban. Cassidy believes Micron exploited this vulnerability. Steven Fox, an analyst at

market research company Cross Research, said that if some companies want to take advantage of this loophole, even if they are headquartered in the United States, they may be able to classify their technology as foreign technology as long as they have overseas subsidiaries and operations. Micron may be the first company to publicly say it will continue to do some level of business with Huawei.

Cassidy worries that the Trump administration may believe that Micron's resumption of shipments to Huawei will undermine the U.S. government's efforts to pressure China in trade negotiations and other actions.

Mehrotra also said frankly: "There is great uncertainty surrounding Huawei's situation. We cannot predict the number of products that can be shipped to Huawei, nor can we guarantee how long the shipments will last."

column editor: Zhang Wu Text editor: Source of Yang Rong’s title picture: Bloomberg Picture Editor: Shao Jing