CompaniesHuawei Technologies Co LtdFollowAug 22 (Reuters) – Huawei Technologies Co is constructing a series of undisclosed semiconductor-fabrication facilities throughout China in order to evade U.S. sanctions, as warned by a semiconductor association based in Washington, according to a report by Bloomberg News on Tuesday. The Chinese tech giant entered the chip production industry last year and is receiving an estimated $30 billion in government funding from the state, stated the Semiconductor Industry Association. It further mentioned that Huawei has acquired at least two existing plants and is in the process of building three additional ones. In 2019, the U.S. Commerce Department added Huawei to its export control list due to security concerns, although the company denies being a security risk. The Bloomberg report suggests that if Huawei is constructing these facilities under the names of other companies, it may be able to bypass U.S. government restrictions and indirectly purchase American chip-making equipment. Reuters reached out to Huawei and the Semiconductor Industry Association for comment, but they have not responded yet. Huawei has been placed on a trade blacklist in the United States, which limits most suppliers from shipping goods and technology to the company unless they obtain licenses. Authorities have been continuously tightening controls to prevent the company from acquiring or designing semiconductor chips that power the majority of its products. Reporting by Akanksha Khushi in Bengaluru; Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles. Acquire Licensing Rights, opens new tab
Original from www.reuters.com