Huawei has been accused by a leading association of semiconductor manufacturers of building a collection of secret chip-making facilities across China to help the technology company bypass US sanctions, according to a report.
The Chinese tech firm moved into chip production last year and was receiving an estimated $30bn (£23.7bn) in state funding from the government, the Washington-based Semiconductor Industry Association was quoted as saying in a Bloomberg news story, adding that Huawei had acquired at least two existing plants and was building three others.
The US commerce department had added Huawei to its export control list in 2019 over security concerns. The company denies being a security risk.
If Huawei is constructing facilities under names of other companies as the Semiconductor Industry Association alleges, then it may be able to circumvent US government restrictions to indirectly purchase American chip-making equipment, according to Bloomberg.
The Semiconductor Industry Association and Huawei did not immediately respond to requests for comment.
Huawei has been placed on a trade list in the US that restricts most suppliers from shipping goods and technology to the company unless they were granted licences.
Officials have continued to tighten the controls to cut off Huawei’s ability to buy or design the semiconductor chips that power most of its products.
