The United States is considering sanctioning several countries linked to Huawei's semiconductor manufacturing, after the Shenzhen-based tech giant made a significant breakthrough.
The United States has been investing billions of dollars to secure domestic production of semiconductors, amid concerns about possible espionage and sabotage carried out by China against companies based in Taiwan, which is home to more than 60% of global semiconductor production. semiconductors.
This latest measure by the United States government, reported by Bloombergappears to be a step forward in efforts to restrict China's ability to manufacture and export domestically produced chips, and Beijing has managed to produce highly complex chips despite existing sanctions.
Export loopholes are actively exploited
People familiar with the matter said Bloomberg That the Semiconductor Industry Association (SIA) previously identified a number of Chinese chip manufacturing sites that are being acquired or built by Huawei could be affected.
The United States is targeting several Chinese companies. This includes Qingdao Si'En, Shenzhen Pensun Technology CO. and SwaySure, among other larger manufacturers, such as ChangXin Memory Technologies Inc., according to those cited by Bloomberg.
Semiconductors are an essential part of almost all electronic devices, from civilian applications such as transportation and healthcare, to technologically advanced military tracking and guidance systems.
Speaking on the announcement, Jeffries analyst Edison Lee said: “Adding more Chinese companies to the US entity list is a very likely event. “It is easy to implement and justify, and will further block certain key Chinese companies from exploiting current loopholes in export restrictions.”
Due to the essential nature and value of semiconductors in everyday life, the Biden Administration's CHIPS Act has set aside tens of billions of dollars to protect chip manufacturing sites within the US. invested several billion dollars in the facilities being built by Intel and Taiwan Semiconductor Manufacturing Company.
