An American semiconductor group claims that a Chinese tech company acquired two plants and is constructing three additional ones
The Semiconductor Industry Association, a prominent semiconductor manufacturers’ association, accuses Huawei of secretly establishing chip plants across China to circumvent US sanctions. According to the Washington-based association, Huawei has entered the chip production domain with significant state funding of approximately $30 billion, acquiring two plants and actively constructing three more.
Added to the export control list in 2019 over security concerns, Huawei denies being a risk. If the Semiconductor Industry Association’s claim that Huawei is constructing facilities under other companies’ names is accurate, the company might be able to bypass US restrictions, indirectly acquiring US chip-making equipment, as reported by Bloomberg.
Both the Semiconductor Industry Association and Huawei have not responded to requests for comments at this time.
In the United States, Huawei has been included in a trade list, imposing restrictions on suppliers regarding the shipment of goods and technology to the company, unless licenses are approved.
Regulations have been tightened further to impede Huawei’s acquisition and design of semiconductor chips, crucial for its products.
In 2019, the Trump administration declared a national economic emergency, empowering the US government to restrict technology and services from “foreign adversaries” posing “unacceptable risks” to national security. Though not explicitly stated, this action came after ongoing US pressure on Huawei.
In a letter to Congress, Biden addressed the declaration of a national emergency, intending to counter the advancements made by nations such as China in critical technologies and products essential for military, intelligence, surveillance, and cyber capabilities.
In August of the preceding year, Biden signed into law the Chips Act, a $50 billion investment initiative aimed at bolstering American semiconductor research, development, and manufacturing. The goal is to maintain the United States’ leadership in technology crucial to diverse sectors, including automobiles, household appliances, and defense systems.