Huawei Is Building a Secret Chip Network, a Trade Group Warns

(CTN News) – As Bloomberg News reported on Tuesday, Washington-based Washington Semiconductor Association has warned that Huawei Technologies Co is building a series of secret semiconductor fabrication facilities throughout China in order to skirt U.S. sanctions on the company.

According to the Semiconductor Industry Association, Huawei has acquired at least two existing plants and will build three more, adding that the Chinese tech giant has moved into chip production last year and is receiving an estimated $30 billion in state funding from the government, which has contributed to the company’s development.

Since Huawei was included on the Commerce Department’s export control list in 2019, there have been concerns about Huawei’s security as a result of its inclusion on the list.

The company has denied that it poses a threat to security and claims that it does not pose a threat whatsoever.

There is a possibility that Huawei might be able to circumvent U.S. government restrictions if it is building chip-making facilities under the names of other companies, according to a report in Bloomberg, if the company is constructing facilities under names of other companies.

According to Reuters, Huawei and the Semiconductor Industry Association did not respond immediately to Reuters’ requests for comment.

As a result of Huawei being placed on a trade blacklist in the United States, most of its suppliers are unable to ship goods or technology to the company unless they are granted licenses to do so.

A number of controls have been tightened in order to prevent the company from being able to buy or design the semiconductor chips that power the majority of its products in the future.

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