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Huawei Accused of Building Secret Microchip Factories To Beat US Sanctions (theguardian.com) 40

Huawei is accused by a semiconductor manufacturers association of setting up secret chip-making facilities in China to evade U.S. sanctions. The Guardian reports: The Chinese tech firm moved into chip production last year and was receiving an estimated $30 billion in state funding from the government, the Washington-based Semiconductor Industry Association was quoted as saying by Bloomberg, adding that Huawei had acquired at least two existing plants and was building three others. If Huawei is constructing facilities under names of other companies, as the Semiconductor Industry Association alleges, then it may be able to circumvent U.S. government restrictions to indirectly purchase American chip-making equipment, according to Bloomberg.
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Huawei Accused of Building Secret Microchip Factories To Beat US Sanctions

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  • Who cares? (Score:5, Insightful)

    by dgatwood ( 11270 ) on Wednesday August 23, 2023 @05:00PM (#63791850) Homepage Journal

    Embargoes against specific companies in China because of their ties to the Chinese government makes about as much sense as a no-peeing section in a public swimming pool. Either you ship chip tech to companies operating in China or you don't. Anything in between is just plain silly.

    • by Gleenie ( 412916 ) *

      Absolutely. Obvious counter-move is obvious.

    • by m00sh ( 2538182 )

      Then they'll set up companies in another country.

    • Did anyone else consider that if they are successful, it will reduce the internal pressure to build viable alternatives and then flood the market?

      A modern fan currently costs $10 billion or more. A massive chunk of that is money to equipment vendors. I would bet everything that China will sell their equipment for pennies on the dollar if only to tip the scales back. Or at least they will manufacture chips so inexpensively that TSMC, Samsung and Intel would never be able to compete.

      If they have access to wes
      • Yes please explain to us how long it will be before they can produce their own High-NA EUV equipment.

    • Exactly. A friend of mine laughs, whenever some government talks about successful negotiations with a specific Chinese company, because "you are *always* negotiating with the government". Companies do what they're told.
    • by Anonymous Coward

      Protections for certain individuals in America simply because of their relation to the President makes about as much sense as calling Hunter Biden (the artist) a qualified board executive of an energy company. Either you call that cokehead a criminal, or you join him in railing lines off that strippers ass. Anything in between is just plain silly.

  • Pot or kettle? (Score:4, Insightful)

    by myowntrueself ( 607117 ) on Wednesday August 23, 2023 @05:01PM (#63791856)

    So... a Chinese company is accused of setting up factories in... China..?

    "it may be able to circumvent U.S. government restrictions to indirectly purchase American chip-making equipment"

    Its in China. So what?

    • Re:Pot or kettle? (Score:5, Informative)

      by geekmux ( 1040042 ) on Wednesday August 23, 2023 @05:14PM (#63791910)

      So... a Chinese company is accused of setting up factories in... China..?

      "it may be able to circumvent U.S. government restrictions to indirectly purchase American chip-making equipment"

      Its in China. So what?

      Government may impose restrictions on specific technology by company name. If Huawei were to stand up a new company under a completely different name, but selling the same restricted product...well there's your loophole.

      • Re: (Score:1, Flamebait)

        So... a Chinese company is accused of setting up factories in... China..?

        "it may be able to circumvent U.S. government restrictions to indirectly purchase American chip-making equipment"

        Its in China. So what?

        Government may impose restrictions on specific technology by company name. If Huawei were to stand up a new company under a completely different name, but selling the same restricted product...well there's your loophole.

        Honestly, its really like the pot calling the kettle black, but theres so much soot on the both of them that you can't tell which is the pot and which is the kettle.
        Sometimes, its like sexual tension where two people obviously have a thing for each other but try to deny it by being extra mean.
        USA, China, just get a fkin room, ok?

      • restricting product is nonsense to begin with, I don't need our politicians hypocritical virtue signalling, war mongering and harming us.

        • restricting product is nonsense to begin with, I don't need our politicians hypocritical virtue signalling, war mongering and harming us.

          Fine. Take the polygraph, pass the requisite Top Secret security clearance, run for office and get elected, and then you too can join them in the classified briefings that spell out in not-so-kind words what is probably a completely justified stance.

          We still do plenty of business with China. For Government to find a reason or seven to ban companies operating anywhere (including America) for shady or illegal business practices, doesn't remotely qualify as "harming" you.

          • There is no "justified stance", the USA has warred against far more nations that didn't attack it than Russia and China combined. The USA tells poor countries not to buy fossil fuel from Russia even as it continues to buy nuclear fuel from them.

            No, I don't need to get into politics with turds like Joe Biden and his shell companies getting millions for his family from USA adversaries and enemies. What a nonsensical idea and argument you make.

            • There is no "justified stance", the USA has warred against far more nations that didn't attack it than Russia and China combined. The USA tells poor countries not to buy fossil fuel from Russia even as it continues to buy nuclear fuel from them.

              Might be true, but nothing you have said disqualifies my point whatsoever. Not even a little bit. We still do a metric fuckton of business with China. You'll know when that changes in America because every fucking Walmart will have empty shelves within a month if it does.

              No, I don't need to get into politics with turds like Joe Biden and his shell companies getting millions for his family from USA adversaries and enemies. What a nonsensical idea and argument you make.

              You're right. You don't need to get into politics. You need to get into the classified briefings that can show how dead wrong you are. Not everyone is Joe Biden running shell games for profit, and not everything is a conspiracy. Some

              • Biden has the support of weaponized government agencies that prevent investigation, and moreover engage in censorship of social media about his family's wrongdoings of which he is part.

                • Biden has the support of weaponized government agencies that prevent investigation, and moreover engage in censorship of social media about his family's wrongdoings of which he is part.

                  Potentially so, yup.

                  However, we've been at (cold) war with China for decades from the US Governments perspective, with all manner of limits imposed as to what we can share with them. So someone else is now in charge. Won't change a damn thing because it hasn't changed a damn thing. Biden banning some company won't suddenly make the family innocent.

                  The simple fact that Not-A-Biden was President in 2019 when sanctions first started on Huawei, tends to reinforce my point here.

      • Government may impose restrictions on specific technology by company name.

        If that means that the US government may impose restrictions on what Chinese people do in China, that's self-evidently absurd.

    • Pretty much this.

      Just tell the company to buy the latest equipment, then buy them up after the equipment arrives. Pay a premium, then do it again...

    • by AmiMoJo ( 196126 ) on Wednesday August 23, 2023 @05:46PM (#63792028) Homepage Journal

      Parts of the media act like China is not allowed to do this stuff because the US says so.

      "Secret factories"... Did they expect Huawei to send Biden a memo?

      • by Anonymous Coward

        Premise. Huawei adds hidden phone home and remote control features in their microcode. U.S. doesn't like the ability to snoop or control equipment that Huawei manufactures so they forbid government agencies from using Huawei equipment and impose sanctions on any new equipment.

        Huawei cries "No fair!", so they purchase and build new companies "Iewauh, Huawewe, Kuawei, and Huawel" hoping the U.S. won't know it is the same parent company. The Semiconductor Industry Association notices the same members on the

        • Huawei adds hidden phone home and remote control features in their microcode.

          I've heard that accusation many times.

          I've never seen or heard any evidence that it's true, and I've read several debunkings for sloppy reporting from Bloomberg and others.

          Can you cite any actual evidence?

          • by DMJC ( 682799 )
            Meanwhile we've all seen the NSA/CIA's garbage bag of tricks. Maybe they should put up or shut up.
  • by manu0601 ( 2221348 ) on Wednesday August 23, 2023 @05:21PM (#63791938)
    US imposes sanctions, China evades them. What did they expect?
  • I hadn't realized China was a provence of the United States of America,
  • Good for them (Score:4, Interesting)

    by SuperDre ( 982372 ) on Wednesday August 23, 2023 @05:48PM (#63792036) Homepage
    Haha, good for them, the sanctions are ridiculous anyway, only set up to try to get US companies an (extra) advantage over them, so very smart of them to show the big finger to the US.
  • the audacity (Score:4, Insightful)

    by sxpert ( 139117 ) on Wednesday August 23, 2023 @05:51PM (#63792056)

    how dare you, Huawei, building a chip manufacturing facitlity on continental chinese soil !! HOW DARE YOU !!

  • Huawei didn't build "secret" fabs to avoid sanctions. Huawei masked their ownership/involvement in these fabs to avoid sanctions.

  • by khchung ( 462899 ) on Wednesday August 23, 2023 @08:09PM (#63792404) Journal

    Who the fxxk write this kind of headline? "Accused" of doing something that is perfectly within their rights to do?

    What's next? "Chinese companies accused of planning to make a profit"? Or "Chinese company accused of trying to beat American companies"? "China accused of planning to improve their lives"?

    In the other news, Google is accused of trying to make an Apple Vision Pro clone. Yeah, that sounded right. /s

  • by jamesjw ( 213986 ) on Wednesday August 23, 2023 @08:20PM (#63792418) Homepage

    China has been making chips for the US for decades and now the US is upset that China is making chips? If the USA gave a crap they'd have kept all their chip manufacturing on shore but they wanted it cheaper and done by the lowest bidder and NOW they're upset that China is making their own when the US has cracked the sads with them?

    I am not a China supporter but this just sounds petty and juvenile to expect them to adhere to directives from the US because they aren't getting their own way just because the US is throwing a toddler tanty and trying to impose sanctions it knows full well will not work against a Country that they were PAYING hand over fist money to not 5 minutes before to do on their behalf.

  • Semiconductors are Taiwan's biggest export and China can underprice them forever.

The most exciting phrase to hear in science, the one that heralds new discoveries, is not "Eureka!" (I found it!) but "That's funny ..." -- Isaac Asimov

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