Amid mounting tensions, Huawei Technologies Co has embarked on a discreet journey to establish a network of undisclosed semiconductor manufacturing facilities across China. This move aims to navigate around the stringent U.S. sanctions, according to a statement from the Semiconductor Industry Association, based in Washington. The association further noted that Huawei, the renowned Chinese tech giant, is poised to receive substantial state funding amounting to approximately $30 billion from the Chinese government.
Having ventured into chip production last year, Huawei is orchestrating its strategic expansion. The Semiconductor Industry Association has unveiled that Huawei’s endeavors include the acquisition of at least two existing plants while simultaneously constructing three novel facilities.
Huawei’s ambition to bolster its semiconductor infrastructure aligns with its pursuit of independence in light of U.S. export controls. The company’s inclusion on the U.S. Commerce Department’s export control list in 2019 due to security concerns has led to stringent restrictions. Despite these challenges, Huawei denies any affiliation with security risks.
The Bloomberg report underscores that if Huawei is employing a covert approach by establishing these facilities under alternate corporate identities, it might circumvent U.S. regulatory constraints. This strategy potentially enables the indirect acquisition of American chip-manufacturing equipment.
Both Huawei and the Semiconductor Industry Association have refrained from immediate responses to queries from Reuters.
Huawei’s trajectory has been substantially impacted by its inclusion in the U.S. trade blacklist, effectively limiting its access to suppliers and technology. The stringent restrictions aimed to curtail Huawei’s acquisition and design of semiconductor chips—a fundamental component powering its products.
As Huawei’s discreet semiconductor ventures continue to unfold, global tech and trade dynamics stand at the precipice of transformation. The evasive maneuvers seek to reshape the technological landscape, offering glimpses into a future where geopolitical tensions and business strategies intertwine.