American semiconductor group alleges Chinese tech company acquired two plants and builds three more.
A major semiconductor manufacturers’ association accuses Huawei of establishing covert chip plants across China, aiming to evade US sanctions. The Washington-based Semiconductor Industry Association states that Huawei entered chip production, receiving substantial state funding of around $30 billion, and has procured two plants while constructing three more.
Placed on the export control list in 2019 due to security worries, Huawei refutes posing risks. If Huawei indeed builds facilities using other firms’ names, as claimed by the Semiconductor Industry Association, it could sidestep US constraints, indirectly obtaining US chip-making equipment, as per Bloomberg.
Requests for comments from both the Semiconductor Industry Association and Huawei went unanswered at the moment.
In the US, Huawei has been added to a trade list, imposing limitations on suppliers to ship goods and technology to the company, unless licenses are granted.
Authorities have further strengthened regulations to disrupt Huawei’s procurement and design of semiconductor chips, essential for its products.
Back in 2019, the Trump administration declared a state of national economic emergency, granting the US government authority to prohibit technology and services from “foreign adversaries” that present “unacceptable risks” to national security. While not explicitly mentioned, this move followed sustained US pressure on Huawei.
Addressing Congress in a letter, Biden stated his declaration of a national emergency, aimed at countering the progress posed by nations like China in vital technologies and products crucial to military, intelligence, surveillance, and cyber capabilities.
In August of the previous year, Biden enacted the Chips Act, an investment initiative of $50 billion, with the objective to enhance American semiconductor research, development, and manufacturing, ensuring the United States remains at the forefront of technology pivotal to various domains, from automobiles and household appliances to defense systems.
