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U.S. may impose further trade sanctions on Huawei chip network



U.S. sanctions Huawei chip network

Huawei is making efforts on a new 5nm chip in China and meeting the native partners to form a strong network but it seems the U.S. plans to interrupt these efforts with even more sanctions. A new report has shed some in-depth details on this subject.

According to Bloomberg, the Biden administration plans to blacklist some Chinese chip producers, specifically linked to Huawei. The U.S. is considering this step after the Mate 60 Pro developer brought in the 5G Kirin chipset (7nm process) last year.

If not more, at least four Chinese semiconductor firms are on the target list of the U.S. authorities and they might soon get imposed with more trade sanctions. The expanding restrictions aim to prohibit China’s AI and 5G chip development.

The information further reveals the name of chipmakers tagged in the blacklisting: Qingdao Si’En, SwaySure, and Shenzhen Pensun Tech Co., or PST. Another leading memory chip producer in this list is ChangXin Memory Technologies Incorporation.

On the other hand, the U.S. authorities may halt firms like Shenzhen Pengjin High-Tech Co. and SiCarrier from helping Huawei with restricted equipment. One of the senior analysts at Jefferies commented on this matter:

“Adding more Chinese companies to the U.S. Entity List is a highly likely event. It is easy to implement and justify, and it will further block certain key Chinese companies from being able to exploit current loopholes in export restrictions.”

U.S. sanctions Huawei chip network

U.S. sanctions on Huawei (Source: Reuters)

Restrictions from other nations:

That’s not it! The U.S. is even forcing countries like the Netherlands, Germany, South Korea, and Japan to make the restrictions more rigid on Huawei for accessing significant equipment and technologies that relate to chip manufacturing.

Even though the foreign government can ban businesses that could harm its nation’s security, these aren’t the final decisions and the U.S. government is currently just seeking these steps. However, this action will certainly impact US-China relations and their ongoing policy considerations.

Huawei chip network has been under U.S. sanctions since 2019 in the name of security threats. Although the company surprised everyone releasing a 5G Kirin chip in 2023 with the Mate 60 series, with the help of SMIC. The 7nm processor implied China’s progress in the semiconductor field, which is why the U.S. is trying to increase challenges.

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