Huawei Tries to Sidestep US Sanctions Using Secret Chip Manufacturing Plants
The US government blacklisted Huawei as a national security risk, but the Chinese company has apparently found a way to sidestep sanctions.
As Bloomberg reports, the Washington-based Semiconductor Industry Association (SIA) believes Huawei is building a secret network of chip manufacturing facilities within China. So far, it has acquired at least two existing facilities and is building at least three more. Funding for this project forms part of around $30 billion Huawei received from the Chinese government for chip production.
Huawei has been on the US Entity List since 2019, meaning a license is required before any exports or transfer of US technology is allowed to the company. As Huawei is seen as a national security risk, no such licenses are expected to be granted.
According to the SIA, Huawei is attempting to bypass such restrictions by running these manufacturing plants under other company names and not disclosing its involvement. It's a "shadow manufacturing network" that exists to help Huawei do business and establish itself as an advanced chip production company within China.
The Commerce Department's Bureau of Industry and Security (BIS) is aware and actively monitoring the situation. Two companies identified as part of Huawei's network of companies, Fujian Jinhua Integrated Circuit Co. and Pengxinwei IC Manufacturing Co. (PXW), have already been blacklisted. PXW hit the headlines last year and is run by a former Huawei executive.
In a statement to Bloomberg, the BIS said, "Given the severe restrictions placed on Huawei, Fujian Jinhua, PXW and others, it is no surprise that they have sought substantial state support to attempt to develop indigenous technologies ... BIS is continually reviewing and updating its
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