Chinese tech giant Huawei is covertly ramping up chip manufacturing facilities with extensive support from the state, Bloomberg reports, citing a semiconductor lobby group presentation it picked up. Huawei — a company that is at the heart of the US-China trade war — began chip production last year and has received USD 30 bn in state funding to do so, the Washington-based Semiconductor Industry Association (SIA) said. Huawei has acquired two plants and is building at least three more under other companies’ names, SIA reportedly told its members. The move could allow the company to sidestep US sanctions that aim to curb China’s access to advanced chips and chip-manufacturing equipment, Bloomberg wrote.

What will the Biden administration do about it? The US Commerce Department’s Bureau of Industry and Security is closely monitoring the situation as it unfolds, it told Bloomberg. The body also stated that it “will not hesitate to take appropriate action to protect US national security,” according to statements cited by Bloomberg.

Tags: