Huawei is creating a collection of a secret chain of semiconductor-fabrication chip facilities across China to help it overcome U.S. sanctions, a Washington-based semiconductor association has warned, reports Bloomberg News.
The Chinese tech giant moved into chip production last year and is receiving an estimated $30 billion in state funding from the government, the Semiconductor Industry Association said, adding that Huawei has acquired at least two existing plants and is building three others.
If Huawei is constructing facilities under the names of other companies as the Semiconductor Industry Association says, then it might be able to circumvent U.S. government restrictions to indirectly purchase American chip-making equipment, according to the Bloomberg report.
Back in 2019, the US commerce department restricted the trade of important electronics and software supplies to Huawei. It includes the business of 5G chipset and Google’s applications.
Afterward, Huawei also got banned from printing chipsets through Taiwan’s TSMC. It later results in the company to in-house Kirin chip. Thereafter, Huawei only sold 4G phones up until the Huawei P60 series.
Also, the US made sure that the company remain cut from important supplies as well as support from the global supply chain. However, there are previous reports from various top media sources including Reuters and NikkeiAsia. This suggests that the company is pushing all corners to achieve this aim.
As for now, there are various speculations running all around the internet but currently, Huawei has not confirmed any of these news about a secret chip chain. We’ll keep you posted with all of the latest input.