Huawei Building Secret Network for Chips, Trade Group Warns
- Tech giant is reportedly getting $30 billion in state support
- Biden administration monitoring and ready to take action
The leading association of global chip companies is warning that Huawei Technologies Co. is building a collection of secret semiconductor-fabrication facilities across China, a shadow manufacturing network that would let the blacklisted company skirt US sanctions and further the nation’s technology ambitions.
Huawei, a controversial telecommunications gear maker at the heart of US-China tensions, moved into chip production last year and is receiving an estimated $30 billion in state funding from the government and its hometown of Shenzhen, according to the Washington-based Semiconductor Industry Association. It’s acquired at least two existing plants and is building at least three others, the group said in a presentation to its members seen by Bloomberg. Huawei has not disclosed its role in this expansion, according to people close to the SIA, who asked not to be identified sharing non-public information.