Bloomberg News warns of Huawei’s covert chip network.
(Reuters) – Huawei Technologies Co is building a collection of secret semiconductor-fabrication facilities across China to let the company skirt U.S. sanctions, a Washington-based semiconductor association has warned, Bloomberg News reported on Tuesday.
The Chinese tech giant moved into chip production last year and is receiving an estimated $30 billion in state funding from the government, the Semiconductor Industry Association said, adding that Huawei has acquired at least two existing plants and is building three others.
The U.S. Commerce Department had added Huawei to its export control list in 2019 over security concerns. The company denies being a security risk.
If Huawei is constructing facilities under names of other companies as Semiconductor Industry Association says, then it might be able to circumvent U.S. government restrictions to indirectly purchase American chip-making equipment, according to the Bloomberg report.
Huawei and the Semiconductor Industry Association did not immediately respond to Reuters’ requests for comment.
Huawei has been placed on a trade blacklist in the United States, restricting most suppliers from shipping goods and technology to the company unless they were granted licenses. Officials have continued to tighten the controls to cut off the company’s ability to buy or design the semiconductor chips that power most of its products.
(Reporting by Akanksha Khushi in Bengaluru; Editing by Sherry Jacob-Phillips)
Breaking News: Huawei Building Secret Semiconductor-Fabrication Facilities to Skirt U.S. Sanctions
Chinese tech giant Huawei is reportedly constructing a network of secret semiconductor-fabrication facilities across China in an effort to evade U.S. sanctions, according to a warning issued by a Washington-based semiconductor association.
The association revealed that Huawei, which entered the chip production industry last year, is receiving a staggering $30 billion in state funding from the Chinese government. It has already acquired two existing plants and is currently building three more.
If the Semiconductor Industry Association’s claims are true, Huawei may be able to bypass U.S. government restrictions by operating these facilities under the names of other companies. This would allow the company to indirectly purchase American chip-making equipment, as reported by Bloomberg.
Both Huawei and the Semiconductor Industry Association have yet to respond to requests for comment from Reuters.
Huawei has faced significant challenges in the United States, including being placed on a trade blacklist that restricts most suppliers from shipping goods and technology to the company without proper licenses. The U.S. Commerce Department added Huawei to its export control list in 2019 due to security concerns, although the company denies being a security risk.
As officials continue to tighten controls, Huawei’s ability to buy or design semiconductor chips for its products is being severely impacted.
(Reporting by Akanksha Khushi in Bengaluru; Editing by Sherry Jacob-Phillips)
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