Huawei Accused of Building Secret Manufacturing Facilities in China

A leading association of semiconductor producers has accused the Shenzhen-based manufacturing giant Huawei of constructing several secret chip-making facilities in China in order to get around U.S. sanctions.

The Semiconductor Industry Association said that Huawei ventured into chip production in 2022 and was receiving about $30 billion in state funding from the U.S. government. The Association added that Huawei had already acquired two chip-making plants with plans to build three more.

By constructing facilities under the names of other companies, Huawei can circumvent U.S. restrictions, allowing the organization to indirectly purchase American chip manufacturing equipment, according to The Guardian.

Huawei and the Semiconductor Industry Association did not immediately respond to requests for comment from The Guardian.

In 2019, the U.S. Commerce Department placed Huawei on its export control list over security concerns, though the company denied that it’s a security risk. This list restricts most suppliers from shipping goods and technology to the business unless they are granted special licenses.

Earlier in August, U.S. President Joe Biden signed an executive order that limits the amount of U.S. investment and expertise, in areas like semiconductors, microelectronics, quantum computing and artificial intelligence, being provided to China, Macao and Hong Kong. The measure is expected to take effect in 2024.