Chinese technology company Huawei is building a secret network of semiconductor manufacturing facilities across China. It wants to circumvent US sanctions. According to Bloomberg, the Washington-based Semiconductor Industry Association is warning of this.
Huawei and China
Huawei went into chip production last year. The association says the Chinese government will provide it with an estimated $30 billion to do so. The company has acquired at least two existing plants and is building three more, it says.
The U.S. Commerce Department blacklisted Huawei in 2019, making it significantly more difficult for the firm to access parts and components offered by U.S. firms and causing production problems. At the time, the United States cited security concerns, with the firm suspected of espionage.
Behind USA’s back
If Huawei is building equipment under other companies’ names, as the Semiconductor Industry Association claims, then it could be able to circumvent US government restrictions and buy American chip-making equipment indirectly, according to Bloomberg.
By being blacklisted in the United States, Huawei can’t have most suppliers send it goods and technology. The exception is if they have been licensed. Officials continue to tighten controls to prevent the company from buying or designing the semiconductor chips that power most of its products, according to Reuters.
Source: ÄŒTK
