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Huawei's Secret Chip Network: Skirting U.S. Sanctions with Hidden Facilities, Says Trade Group

Huawei Technologies Co is reportedly creating a hidden network of semiconductor fabrication facilities across China, aiming to evade U.S. sanctions. This revelation comes from a Washington-based semiconductor association, raising concerns about the Chinese tech giant's tactics.

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Huawei's Secret Semiconductor Network

Huawei Technologies Co is constructing an undisclosed collection of semiconductor fabrication facilities throughout China. This move is designed to allow the company to dodge U.S. sanctions, as reported by Bloomberg News on Tuesday, according to a warning from a Washington-based semiconductor association.

Investment in Chip Production and Facility Acquisition

The Chinese tech giant has ventured into chip production since last year. With an estimated $30 billion in state funding, Huawei has acquired at least two existing plants and is in the process of building three more reveals the Semiconductor Industry Association.

Huawei's U.S. Export Control List Placement

Back in 2019, the U.S. Commerce Department placed Huawei on its export control list over security concerns, although Huawei denies being a security risk. This move had a significant impact on the company's dealings with U.S. entities.

Circumventing U.S. Government Restrictions

If Huawei is indeed constructing these facilities under other companies' names, as the Semiconductor Industry Association alleges, it may find a way around U.S. government restrictions. This would allow Huawei to indirectly purchase American chip-making equipment, according to the Bloomberg report.

Huawei's Placement on U.S. Trade Blacklist

Huawei has been placed on a trade blacklist in the United States, limiting most suppliers from shipping goods and technology to the company without special licenses. U.S. officials have consistently tightened these controls, effectively hampering the company's ability to buy or design the semiconductor chips vital to its products.

Lack of Immediate Response from Parties Involved

Both Huawei and the Semiconductor Industry Association have yet to respond to Reuters' requests for comments on the matter. Their silence adds to the growing concern about Huawei's tactics in the global technology market.