A Washington-based semiconductor group has warned that Huawei Technologies Co. is constructing a network of hidden semiconductor-fabrication facilities across China in order to avoid US sanctions, Bloomberg News reported on Tuesday. According to the Semiconductor Industry Association, Huawei entered chip manufacturing last year and is receiving an estimated $30 billion in government investment. Huawei has acquired at least two existing plants and is building three more. Due to security concerns, the US Commerce Department added the company to its export control list in 2019. The corporation denies that it poses a security concern.
Huawei has been placed on a trade blacklist in the United States,
According to Bloomberg, if the company is building facilities under the names of other businesses, as the Semiconductor Industry Association claims, it may be able to avoid US government limitations and indirectly purchase American chip-making equipment. BreezyScroll’s attempts for comment were not immediately responded to by Huawei or the Semiconductor Industry Association. In the United States, Huawei has been placed on a trade blacklist, preventing most suppliers from transferring goods and technology to the corporation unless they are granted licenses. Officials have continued to tighten rules in order to prevent the corporation from purchasing or designing the semiconductor chips that power the majority of its goods.