Huawei Secretly Building Semiconductor Manufacturing Network, Reports Bloomberg

According to Bloomberg News, the Semiconductor Industry Association in Washington has warned that Huawei Technologies is secretly constructing a network of semiconductor manufacturing facilities across China to circumvent U.S. sanctions. The association stated that the Chinese tech giant entered the semiconductor production field last year and is receiving state funding estimated at around $30 billion. It added that Huawei has acquired at least two existing factories and is in the process of building three more. The U.S. Department of Commerce placed Huawei on its export restriction list in 2019 due to security concerns. The company denies posing any security threat. According to Bloomberg's report, Huawei’s construction of factories under the names of other companies, as said by the Semiconductor Industry Association, would enable it to bypass Washington's restrictions and indirectly purchase American-made semiconductor manufacturing equipment. Neither the Chinese company nor the association has responded to requests for comments from Reuters. The United States has blacklisted Huawei, preventing most suppliers from sending goods and technology to the company without a license. Officials continue to tighten restrictions to prevent the company from purchasing or designing semiconductor chips used in most of its products.