US Considers Sanctions Over Huawei's Semiconductor Network

New Delhi: The Biden administration is reportedly mulling placing several Chinese semiconductor companies associated with Huawei Technologies Co. on a blacklist. This decision comes in the wake of Huawei achieving a notable technological advancement last year, people familiar with the matter stated.  

This move would mark an escalation in the United States' efforts to constrain Beijing's ambitions in artificial intelligence and semiconductor industries. It aims to further restrict and pressure Huawei, a prominent Chinese technology company, which has managed to make significant advancements despite facing previous sanctions. Notably, Huawei's production of a smartphone processor last year, perceived by many in Washington as beyond its capabilities, underscores its resilience amidst ongoing challenges.

The Chinese entities targeted for blacklisting were previously highlighted as chipmaking facilities either acquired or under construction by Huawei, as outlined in a presentation by the Semiconductor Industry Association, based in Washington. However, it's important to note that no definitive decisions have been reached yet. This information was initially reported by Bloomberg News in 2023.

The potential blacklisting targets reportedly include chipmakers such as Qingdao Si'En, SwaySure, and Shenzhen Pensun Technology Co. (PST). Additionally, there is consideration for imposing sanctions on China's prominent memory chip manufacturer, ChangXin Memory Technologies Inc. This information comes from sources who preferred to remain anonymous as they were not authorized to disclose non-public details.

“Adding more Chinese companies to the US Entity List is a highly likely event. It is easy to implement and justify, and it will further block certain key Chinese companies from being able to exploit current loopholes in export restrictions,” Jefferies analyst Edison Lee commented on ChangXin's identification as a potential target for sanctions.