Huawei reportedly building 'secret' semiconductor fabs
- Reference: 1692941405
- News link: https://www.theregister.co.uk/2023/08/25/huawei_building_secret_fabs/
- Source link:
The Semiconductor Industry Association reportedly informed its members that Huawei has acquired two existing plants and is building three more. It has also received some $30 billion in government subsidies to help. The move into chip fabrication makes sense for Huawei, given its difficulty selling networking gear and its government's desire to build more chips at home.
According to [1]Bloomberg , though, the fabs would enable "a shadow manufacturing network that would let the blacklisted company skirt US sanctions and further the nation's technology ambitions."
[2]
Huawei has allegedly been tight-lipped about the endeavor – lending the whole affair a cloak-and-dagger air.
[3]China cooks covert chips, recruits global geeks to dodge US restrictions
[4]Huawei could be banned from 5G networks across the EU
[5]US sanctions cut Huawei profits by half in first quarter
[6]Mega patent holder Huawei said to be putting licensing squeeze on SMEs
Bloomberg's reporting is largely based on a member-only presentation given by the Semiconductor Industry Association (SIA). The Register contacted SIA to receive further details but the mainstay trade and lobbying group did not respond.
The day after the Bloomberg report, however, SIA [7]released a statement stating its report merely summarized trends from publicly available information and focused on a set of widely reported developments.
[8]
[9]
"The news story in question included several inaccuracies. SIA, for example, did not issue any warnings or sound any alarms," downplayed the org.
Huawei [10]entered the US Commerce Department's entity list in 2019 over concerns that unidentified foreign adversaries could exploit vulnerabilities in IT and telecom systems and services.
[11]
Since then, many governments have jumped on or considered jumping on the Huawei ban-wagon. For instance, in June, [12]the EU was mulling over a mandatory ban on member states using kit from manufacturers deemed to be a possible security threat in their telecoms networks.
The measure has had a considerable effect on the Chinese tech concern. Its profits [13]dropped 46 percent percent in the first quarter of 2023.
The Bureau of Industry and Security reportedly told Bloomberg it is monitoring the situation but is not surprised if Huawei is seeking state support, given the severe restrictions placed on its activities. ®
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[1] https://www.bloomberg.com/news/articles/2023-08-23/huawei-building-secret-chip-plants-in-china-to-bypass-us-sanctions-group-warns?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTY5Mjc2NjM0OCwiZXhwIjoxNjkzMzcxMTQ4LCJhcnRpY2xlSWQiOiJSWjBIS1dUMVVNMFcwMSIsImJjb25uZWN0SWQiOiJERkVGQzVBQ0FGOTg0QjFCQTQ2MkFCMzE2NUNBRTIxNCJ9.t8w_bXmZGaO3YWTR-Aaxn-I4GgYqQy1xM2cREYMKt_g
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZOh7xbGGH111dap-7RAMKAAAA8o&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.theregister.com/2023/08/24/china_us_tech_restrictions/
[4] https://www.theregister.com/2023/06/07/huawei_may_face_euwide_5g/
[5] https://www.theregister.com/2023/04/28/us_sanctions_cut_huawei_profits/
[6] https://www.theregister.com/2023/06/19/huawei_patents/
[7] https://www.semiconductors.org/sia-statement-on-recent-news-story/
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZOh7xbGGH111dap-7RAMKAAAA8o&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZOh7xbGGH111dap-7RAMKAAAA8o&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[10] https://www.theregister.com/2019/05/15/president_trump_huawei_emergency_ban/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZOh7xbGGH111dap-7RAMKAAAA8o&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://www.theregister.com/2023/06/07/huawei_may_face_euwide_5g/
[13] https://www.theregister.com/2023/06/07/huawei_may_face_euwide_5g/
[14] https://whitepapers.theregister.com/
“According to Bloomberg..."
Say no more, squire, say no more.
'Secret'?
Huawei's breadcrumb trails are pretty easy to follow, if you really want to follow them, and the admission by SIA that it based its claims on publicly available data (which no doubt included a slice or two of speculation) shoots a big hole into the 'secret' aspect of all this.
Huawei, like Apple, Google, Microsoft and practically every other tech company on the planet does have labs, research centres and the like which contain 'secret' products etc but you can't keep mass production sites secret at all when the products are destined for the consumer industry.
The manufacturing 'grey' market for some manufacturing tools (hardware and software) has always existed. Getting things from that market or 'second hand' is commonplace across all industries, too.
Let's not forget that both China and the EU have 'sanctions busting' laws. AFAIK, China has only used those once since sanctions began but if a Chinese company can legally purchase US technology, Chinese law makes it very difficult for them to not be able to sell it on within China.
The US is well aware of this.
As for Huawei's plans, well logically they don't advertise them and, under the current circumstances, they even go out of their way to 'openly' keep some things 'secret'. That's why all the circuit boards and chips on show at MWC2023 were taped over or eliminated.
What are they doing exactly with regards to chip manufacturing?
No one on the outside knows officially, but it is clear they have no alternative but to become vertical in chip production as soon as possible.
They will do that through their own resources, government funding, common strategies with universities and by investing in local technology companies and pushing them to improve their products.
The 5G BAW-filter 'choke point' is a rumoured clasic example of this.
The US openly spoke of destroying Huawei. It used the term 'choke' on many occasions.
However, It looks like it is the entire US semiconductor industry will end up choking on the sanctions in the longer term.
Here beginneth the first of many major lessons
Methinks everyone with any great sense has to learn and accept that to think that they can secrets secret is to self-identify oneself as a deluded fool and useful enough tool for A.N.Others to exploit.
Nothing to see here
"a shadow manufacturing network that would let the blacklisted company skirt US sanctions and further the nation's technology ambitions."
Somewhat alarmist language for a very obvious reaction to sanctions, which Bloomberg "discovered" through the usual channels.