Trade Group Warns That Huawei Is Creating a Secret Chip Network: Report

According to a Washington-based semiconductor association’s warning, Huawei Technologies Co. is constructing a network of covert semiconductor-fabrication facilities around China to enable it to avoid American sanctions, Bloomberg News reported on Tuesday.

According to the Semiconductor Industry Association, Huawei has bought at least two existing factories and is now developing three more. The Chinese tech giant entered the chip manufacturing market last year and is currently getting an estimated $30 billion in state investment from the government.

Due of security concerns, the U.S. Commerce Department put Huawei to its export restriction list in 2019. The business denies posing a threat to security.

According to the Bloomberg story, if Huawei is building facilities under the names of other firms, as the Semiconductor Industry Association claims, it may be able to get over limits placed by the American government and indirectly buy American chip-making equipment.

Due to Huawei’s inclusion on a trade blacklist in the US, most suppliers are prohibited from sending the business products and technology unless they have permits. In order to prevent the corporation from purchasing or designing the semiconductor chips that power the majority of its goods, officials have proceeded to tighten the regulations.

Reuters reached out to Huawei and the Semiconductor Industry Association for comment, but neither organization responded right away.

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