Huawei is reportedly processing support for a new chipmaker in order to bypass the US sanction regime slammed on it since 2019. The startup, Pengxiwei IC Manufacturing Co. (PXW) has ordered chip-making equipment for a semiconductor manufacturing plant in China. The company is run by a former Huawei executive, fuelling suspicion in US circles that Huawei may be connected with the move.
It is believed that overseas suppliers of chip-making equipment are involved. The US Commerce Department’s Bureau of Industry and Security (BIS) has already beamed its searchlight on PXW. The BIS, in a statement released, says it is on the lookout for efforts to export controls for companies like Huawei on the Entity List. The PXW manufacturing facility is within the vicinity of Huawei’s headquarters and this has been established with satellite images and public records.
PXW will be restricted in what chip-making equipment it can buy from US suppliers or other overseas companies that deploy American technology in their equipment. The company plans to begin production of chips using the 28nm process in 2025.
Huawei has endured a tortuous time since the US sanctions kicked in at the height of its global dominance. It was previously the world’s largest supplier of mobile communications equipment and a leader in pioneering 5G technology. The US allegations center on espionage and the Chinese company has continued to deny the claims.
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(source)
