Secret Network of Semiconductor Manufacturing Facilities Discovered by Huawei in China, Report Claims
In a shocking new development, Chinese tech giant Huawei has been accused of assembling a secret network of semiconductor manufacturing facilities in China to bypass US sanctions. The allegations suggest that Huawei is using these hidden facilities to dodge export controls placed on the company due to national security concerns. The report was first published by the Semiconductor Industry Association and subsequently reported by Bloomberg.
According to the report, Huawei began producing chips last year and has received an estimated $30 billion in government funding. This funding has allowed the company to establish two manufacturing plants, with three more currently under construction. The revelation of these efforts is significant, as Huawei was added to the US Commerce Department’s export control list back in 2019. The addition was made due to concerns over potential security risks stemming from the company’s ties to the Chinese government.
The export controls imposed on Huawei restrict US firms from selling advanced technologies to the company, including semiconductors and chipmaking equipment used in Huawei’s telecommunications equipment. However, if it is true that Huawei is operating these facilities under different business names, it could potentially enable them to evade the export controls. This would allow the company to buy chipmaking technology from US suppliers through intermediaries that are not subjected to export controls.
The Bureau of Industry and Security (BIS) at the US Commerce Department has been closely monitoring the actions of Huawei and other Chinese companies and updating export controls accordingly to adapt to evolving threats. In response to the revelations, a BIS spokesperson stated, “BIS is continually reviewing and updating its export controls based on the evolving threat environment and, as evidenced by the Oct. 7 2022 rules, will not hesitate to take appropriate action to protect U.S. national security.”
This news comes amid an ongoing trade war between China and the US, with both countries imposing restrictions on high-end semiconductor exports. China recently retaliated against the US and its allies by imposing restrictions on Micron, a leading producer of chips used in computer memory and data storage hardware. These restrictions were in response to curbs placed on Chinese firms’ access to technology used in chip manufacturing.
Chipmakers have expressed concerns over these export curbs going too far and harming their competitive position. The Semiconductor Industry Association, the largest trade group representing chipmakers, issued a statement last month urging the US government to refrain from further restrictions until they can fully assess their impact. They argue that restrictions should be narrow, clearly defined, consistently applied, and fully coordinated with allies.
Neither Huawei nor the Semiconductor Industry Association immediately responded to requests for comment on the allegations.
In conclusion, this report raises serious concerns about Huawei’s practices and the potential evasion of US sanctions. It highlights the ongoing tensions and trade restrictions between the US and China in the semiconductor industry. Further investigation and action may be needed to address these allegations and safeguard national security interests.