19 votes

Huawei accused of building secret microchip factories to beat US sanctions

8 comments

  1. [2]
    riQQ
    (edited )
    Link

    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 by Bloomberg, adding that Huawei had acquired at least two existing plants and was building three others.

    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.

    10 votes
    1. Bipolar
      Link Parent
      After Nortel not sure what people expected working with them. But profits above everything I guess.

      After Nortel not sure what people expected working with them. But profits above everything I guess.

      3 votes
  2. [6]
    Toric
    Link
    How is deciding to make your own chips because sanctions dont let you buy them bad

    How is deciding to make your own chips because sanctions dont let you buy them bad

    8 votes
    1. [4]
      riQQ
      Link Parent

      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.

      24 votes
      1. [3]
        JamPam
        Link Parent
        The same US government restrictions the US government placed in order to create more international independence on them and no one else. I understand why it's bad for the US but I wouldn't say...

        The same US government restrictions the US government placed in order to create more international independence on them and no one else. I understand why it's bad for the US but I wouldn't say it's unfair, the US government loves the free market until it hurts them.

        8 votes
        1. [2]
          nowayhaze
          Link Parent
          Your assessment is not quite fair to the US I would say. Most of much of Huawei's tech, especially in the early days were stolen IP from US and Western companies. There were numerous explicit...

          Your assessment is not quite fair to the US I would say. Most of much of Huawei's tech, especially in the early days were stolen IP from US and Western companies. There were numerous explicit examples of very egregious Huawei making knockoff telecom devices that used the same hardware design and exact source code stolen from other companies. It's not exactly a fair free market when one side doesn't play by any rules.

          I think it would be a caricature to think the US ever pushed a no-holds-barred anarchist laissez-faire system. On the contrary, the US government has always been pretty protectionist for most of its history except for the period after WWII until recently.

          If Chinese companies like Huawei succeed in legitimizing themselves globally and reaching parity or surpassing Western companies with their practices, it sort of demonstrates how asymmetric breaking rules is for getting ahead. A parallel to the fact that democracies are not a complete free-for-all comes to mind: there's a point you can break democratic institutions with more nefarious tactics.

          10 votes
          1. JamPam
            Link Parent
            I think it gets down to what you consider research and development is for. I think if someone finds out that building X in this new design of Z instead of Y that information should be shared to...

            I think it gets down to what you consider research and development is for. I think if someone finds out that building X in this new design of Z instead of Y that information should be shared to benefit the world. I do understand that in the modern capitalist systems it can hurt you to share that information in terms of market share and revenue but if you look at it in terms of world efficiency I am very much for the sharing of newly discovered information. If you think about it pretty much everything we have in our households now has come from the discoveries and innovations from countries and people all around the world, and if it wasn't for "copying" them we would have them.

            2 votes
    2. chocobean
      Link Parent
      Making chips under their own brand to sell to Chinese citizens is perfectly fine. Huawei making chips under pretend names that aren't on the sanction list and selling to Americans is NOT fine....

      Making chips under their own brand to sell to Chinese citizens is perfectly fine. Huawei making chips under pretend names that aren't on the sanction list and selling to Americans is NOT fine.

      They're being accused of putting on a fake nose and mustache to get past the bouncer's no invite list.

      The US crying foul won't stop the chip factories, but it is publicly anouncing to Us-okay companies that, hey, if you are thinking about buying "totally not sanctioned non Huawei" chips, you could be facing a huge financial loss when we outright declare those chips you bought can't come in.

      9 votes