Anonymous ID: fb5b19 Aug. 23, 2023, 5:06 p.m. No.19414612   🗄️.is đź”—kun

Huawei To Dodge US Sanctions With 'Secret' Network Of Chip Factories

 

A DC-based trade group says that Huawei is building a network of secret semiconductor-fabrication facilities across China in what Bloomberg describes as "a shadow manufacturing network that would let the blacklisted company skirt US sanctions and further the nation’s technology ambitions."

 

Huawei, which is receiving some $30 billion in state funding from the CCP and its home town of Shenzhen, moved into chip production last year according to the Semiconductor Industry Association, which says in a recent presentation that the sanctioned company has acquired at least two existing plants and is building at least three others.

 

The US Commerce Department under former President Donald Trump added Huawei to its entity list in 2019, which prohibits it from working with American companies under nearly all circumstances. If they're constructing facilities under undisclosed subsidiaries, however, the telecom giant may be able to dodge sanctions and indirectly purchase US chipmaking equipment and other supplies that would otherwise be banned.

 

The Commerce Department’s Bureau of Industry and Security, in response to questions from Bloomberg News about the SIA warnings, which haven’t been previously reported, said it’s monitoring the situation and is ready to take action if necessary. It has already blacklisted dozens of Chinese companies beyond Huawei, including two the SIA says are part of Huawei’s network — Fujian Jinhua Integrated Circuit Co. and Pengxinwei IC Manufacturing Co., or PXW. -Bloomberg

 

"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," said the BIS in a statement to Bloomberg. "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 US national security."

 

Last October, the Biden administration slapped China with export controls that prevent Chinese companies from acquiring certain advanced semiconductors and chipmaking equipment in an attempt to slow down the CCP's military development. The controls excluded older-generation chipmaking equipment, such as those which use 28-nanometer technology or above. Companies on the blacklist, such as Huaei, can't even buy older equipment without a rarely-issued license.

 

https://www.zerohedge.com/geopolitical/huawei-dodge-us-sanctions-secret-network-chip-factories