Biden administration mulls blacklisting Huawei network: Bloomberg
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The news: The US government is weighing the sanctioning of firms associated with Huawei Technologies following the telecom giant’s advanced 7 nanometre chip breakthrough last year.
The numbers: In December, Huawei said it expects to report revenues in excess of 700 billion yuan ($98.5 billion) for 2023, indicating a 9% year-over-year revenue growth from 2022.
The context: According to sources cited by Bloomberg, most of the Chinese semiconductor firms which would be affected by the sanctions have been identified as chipmaking facilities acquired or being built by Huawei. The companies named include Qingdao Si’En, SwaySure, and Shenzhen Pensun Technology Co.
Huawei was added to the list in 2019, which means that it cannot purchase American technology unless sellers obtain a specific export licence from the Commerce Department. Despite the sanction, Huawei’s launch of the Mate 60 device powered by a 7 nanometre chip in August last year caught the US by surprise as Washington officials had thought it was beyond Huawei capabilities.
It is unclear as to when the administration will decide whether or not to add the companies to the banned ‘entity list.’
The US has been working to limit China’s global semiconductor and AI ambitions on the basis of national security concerns. It recently introduced restrictions on the type of microchips that could be exported to China, forcing chip giant Nvidia to build less powerful chips exclusively for the Chinese market. In January, US officials pressured Dutch chipmaking equipment provider ASML Holdings to cancel shipments to China, weeks before the Netherlands own import bans were set to take effect.
The sources: Bloomberg, Capital Brief
