JAKARTA – The American Semiconductor Industry Association (SIA) has revealed Huawei’s covert semiconductor manufacturing operations, which it called a “shadow manufacturing network”. This clandestine network has played a vital role in advancing China’s technological ambitions while evading international sanctions.
According to the SIA, Huawei has quietly acquired at least two secret factories in China. And they are currently building at least three more. According to a report from Gizchina, Wednesday (8/23/2023), financing for this business is estimated to reach around $30 billion or the equivalent of 459 trillion rupees.
What distinguishes this company’s approach is its ability to operate through proxy companies and aliases. Effectively hiding his direct involvement in the manufacturing plant. This secret strategy allows Huawei to evade US sanctions.
This allows the company to acquire American equipment for the production of chips and other limited materials.
The U.S. Department of Commerce’s Bureau of Industry and Security responded to the SIA report by expressing its close monitoring of the situation and its willingness to take action if necessary. Including the ban of several Chinese companies, not limited to Huawei.
Two entities in the Huawei network, Fujian Jinhua Integrated Circuit Co. and Pengxinwei IC Manufacturing Co. (PXW), is also included in this list. Furthermore, the revelation of Huawei’s secret manufacturing network has raised alarm in the Biden administration.
It has been reported that the United States is actively considering tightening China’s export controls in response to these developments. This situation underscores the complex interplay between national security issues and the ever-changing global technology competition landscape.
As governments around the world grapple with how to overcome such covert operations, Huawei’s obscure manufacturing web serves as a reminder of the challenges posed by entities determined to ignore international regulations in achieving their technology goals.
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