Despite US efforts to sanction chip exports to Chinese companies, Huawei reportedly still has access to components through strategic partnerships.
Companies like Pengzinzu, SwaySure Technology, Qingdao Si’En and “potentially many others” are suspected of being part of a “clandestine network” of organizations supporting Huawei to maintain access to restricted chips (via S.C.M.P).
The concerns were raised by House China Select Committee Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi in a recent letter addressed to Commerce Secretary Gina Raimondo.
Huawei would circumvent US chip sanctions
The US and many of its allies have already imposed significant restrictions on sales of advanced chips and manufacturing equipment to China, including companies such as Applied Materials and ASML Holding, but these have generally not proven successful.
The efforts, which hoped to stifle Chinese development of advanced semiconductors that the U.S. believes could benefit China’s military, have been difficult to regulate. Chinese companies were previously observed gaining access to Nvidia’s A100 and H100 chips through cloud computing services such as AWS.
Huawei’s latest smartphone, powered by a seven-nanometer chip from Semiconductor Manufacturing International Corp (SMIC), represents a major advance and prompts calls for stricter controls.
“We must continue our efforts to deny Huawei and similar companies access to American technology,” Moolenaar and Krishnamoorthi wrote.
Concerns have also been raised about slowed processes, which have allowed Chinese companies to stockpile cutting-edge equipment.
On the other hand, companies are concerned that export sanctions could have a significant impact on business. ASML says China accounts for about a fifth of its sales (via Bloomberg).
Moreover, Chinese Foreign Ministry spokeswoman Mao Ning described at a press conference in Beijing that the US is “exaggerating the concept of national security, erecting barriers and undermining normal cooperation between the two countries.”
The Commerce Department has acknowledged receipt of the letter and indicated it will respond through appropriate channels.
