Qualcomm (NASDAQ:QCOM) and Intel (NASDAQ:INTC) took center stage on Tuesday following reports by the Financial Times indicating that the Biden administration has pulled the plug on export licenses allowing the two semiconductor giants to provide Chinese telecommunications company Huawei with processors.

Both companies saw a slight dip of approximately 0.4% in their respective share prices in response to the news.

The Commerce Department’s move to revoke the licenses for chip supply to Huawei’s laptops and mobile phones was disclosed by sources familiar with the matter, as reported by the Financial Times.

Qualcomm was not immediately available for comment when approached by Seeking Alpha. In contrast, Intel opted not to provide a statement.

Huawei has long been under stringent sanctions imposed by Washington lawmakers, with some originating from the Trump era. Reports suggest that Republican lawmakers have urged the Biden administration to intensify actions against Huawei amid allegations of aiding Chinese government cyber espionage activities. Huawei and Beijing have vigorously refuted these accusations.

The unveiling of Huawei’s Mate 60 Pro smartphone in August raised eyebrows within the industry due to its advanced capabilities. The smartphone showcased a chip created by China’s Semiconductor Manufacturing, sparking concerns in the U.S. surrounding Huawei’s access to critical technologies.

While the chip lags behind top-tier components from global tech firms, it sits ahead of the point where the U.S. sought to impede China’s technological advancement. The smartphone prompted scrutiny from U.S. authorities to investigate the details of the chip, noted as China’s most advanced semiconductor achievement to date.

Reports earlier in the year highlighted the reliance of Huawei and Semiconductor Manufacturing International on technology from U.S. semiconductor equipment providers Applied Materials (AMAT) and Lam Research (LRCX) for manufacturing the sophisticated 7-nanometer chip.

Insights from Seeking Alpha’s Ravikash Bakolia contributed to this narrative.

(Intel’s decision not to comment has been incorporated in this report.)