China’s Huawei Building Secret Chip Fabrication Plant To Navigate US Sanctions: Report

Huawei, the Chinese tech juggernaut, is strategically establishing a network of undisclosed semiconductor fabrication plants across various regions of China, reported Bloomberg. The purpose of this move, as indicated by a semiconductor association based in Washington, is to cleverly navigate the constraints imposed by US sanctions. In a daring venture into the realm of chip production last year, Huawei has reportedly garnered substantial financial backing from the Chinese government, believed to be in the vicinity of $30 billion.

The Semiconductor Industry Association, an authoritative voice in this landscape, disclosed these intricate manoeuvres. Their assertion underscores the fact that Huawei has not only acquired ownership of at least two existing chip plants but is also diligently constructing three additional facilities.

The US Commerce Department’s decision to place Huawei on its export control roster dates back to 2019, attributing the move to concerns about national security. Notably, Huawei staunchly denies any allegations of posing security risks.

The current expose suggests that if the Semiconductor Industry Association’s claims hold true and Huawei is indeed concealing its operations under the guise of other corporate entities, a clandestine opportunity may have arisen. This opportunity could potentially enable the company to elude the limitations imposed by the U.S. government. By adopting this approach, Huawei could indirectly gain access to American chip-manufacturing equipment, bypassing the government restrictions in place. This perspective is elaborated upon in the insightful Bloomberg report.

It’s important to remember that Huawei has already found itself ensnared in the intricate web of trade restrictions within the United States. These restrictions have effectively curtailed the majority of suppliers from engaging in the shipment of goods and technology to Huawei. This is unless these suppliers have been granted the requisite licenses. In a bid to further tighten their grip, regulatory officials have progressively enhanced controls, aiming to sever the company’s capacity to acquire or devise the pivotal semiconductor chips that power its extensive range of products.