HomeEconomyTo circumvent US sanctions, Huawei would build a network of hidden factories

To circumvent US sanctions, Huawei would build a network of hidden factories

According to the main association of semiconductor manufacturers, the Chinese giant Huawei has built several factories under the names of other companies to circumvent US sanctions.

Secret factories in the shadow of Huawei. In a document sent to its members, the main professional association of semiconductor manufacturers warned of a network of “ghost” factories behind which the Chinese giant would hide, reports Bloomberg. A way for Huawei to cover up the clues about the origin of its electronic chips and avoid US sanctions, warned the Semiconductor Industry Association (SIA), which brings together the largest companies in the sector such as Intel, Samsung or TSMC.

Specialized in telecommunications equipment, the Chinese group has been affected by US sanctions for several years, as Washington suspects that the company carries out espionage for the benefit of Beijing. These sanctions block almost all trade between US companies and Huawei, forcing them to look for new sources of growth. According to the SIA, Huawei has embarked on the manufacture of electronic chips, financed with 30 billion dollars by the Chinese State, eager to develop national production.

technological rivalry

Two semiconductor manufacturing plants have been acquired around Shenzhen, where the group’s headquarters are located, and at least three more factories are under construction, the SIA says. Although Huawei is behind it, these factories are officially owned by other companies. By not being blacklisted by the United States, the Chinese group could circumvent sanctions and source from companies it shouldn’t have access to, allowing it to indirectly buy American equipment.

asked by Bloomberg, the US Department of Commerce’s Bureau of Industry and Security (BIS) responded that it was monitoring the situation in this regard and would “not hesitate to take appropriate action.” The major chip companies will face significant new competition if China manages to achieve its ambitions. In this context of strong technological rivalry with the United States, the country intends to multiply its national production of semiconductors in the coming years.

Author: bruno jeremy
Source: BFM TV

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