Bloomberg: US Considers Adding Chinese Semiconductor Companies Linked to Huawei to Blacklist

By admin Mar 20, 2024

According to Bloomberg, sources familiar with the matter stated that the US Biden administration is considering adding multiple Chinese semiconductor companies linked to Huawei to the blacklist following significant technological advancements made by the telecom giant Huawei last year.

This move would signify a further escalation of US actions to block and restrain Beijing’s ambitions in artificial intelligence and semiconductor technologies. Despite facing US sanctions, Huawei has continued to make progress, including designing a smartphone processor last year that exceeded initial US expectations.

Sources revealed that most of the Chinese entities that could be affected by the potential new sanctions were chip businesses acquired or established by Huawei, as previously identified by the US Semiconductor Industry Association. The Biden administration has not yet made a final decision.

Companies potentially facing blacklisting include chip manufacturers Semiconductor Manufacturing International Corporation (SMIC), Shenzhen Goodix Technology, and Naura Technology Group (PST). Biden officials are also considering adding Chinese memory chip maker Yangtze Memory Technologies to the list of entities restricted from accessing US technology.

After Yangtze Memory Technologies came under scrutiny, Jefferies analyst Edison Lee stated last week that there is a high likelihood of more Chinese companies being added to the US entity list. “It is easy to implement and prove, and it will further plug the loopholes that some major Chinese companies may be exploiting under the current export restrictions.”

In addition to companies directly involved in chip production, US officials may also target Shenzhen Inovance Technology and New Keli, according to a source. These two companies, which manufacture semiconductor manufacturing equipment, are reportedly acting as intermediaries helping Huawei acquire restricted equipment.

The US government is pressuring allies such as the Netherlands, Germany, South Korea, and Japan to tighten restrictions on China’s access to semiconductor technology further. Huawei is a key player in this effort and in Beijing’s attempts to reduce reliance on Western technology.

Sources indicated that the timing of a final decision by US officials remains uncertain and could depend on the state of relations between Washington and Beijing, as both sides have been working to improve relations over the past few months.

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