Taiwanese companies helping Huawei to build Chip plants – Bloomberg

Many watchdogs locked Huawei into radar since the launch of its new Kirin chip. It’s now being said that Taiwanese companies are helping Huawei to build new chip plants with their expertise.

Bloomberg reported that several Taiwanese technology companies are helping Huawei to build infrastructure for an under-the-radar network of chip plants across southern China. The publication noted that “this is an unusual collaboration that risks inflaming sentiment on a democratic island grappling with Beijing’s growing belligerence.”

The report revealed that Huawei has a new chip plant in Shenzhen, which the company began in August. However, it’s fully private from what it’s doing in action.

The Taiwanese companies mentioned in the report are the Chinese subsidiary of L&K Eng., Cica-Huntek Chemical Technology, the Chinese subsidiary of United Integrated Services Co., and other small companies. However, it’s speculated that these firms are crucial in building the most powerful semiconductor industry in Taiwan.

US Violation?

In 2019, Huawei was sanctioned by the US and the company cannot import US goods and chipsets. They also cannot print new chipsets from the likes of TSMC. This means, no company or firm that uses US-based technology can’t supply to Huawei.

Peter Elstrom from Bloomberg said that there’s no confirmation of what kind of technology or support these companies are giving to Huawei. Therefore, it’s hard to understand whether there’s a clear violation.

However, Peter also said one of these firms works on semiconductor wastewater management systems for a facility. So, instead of helping, these Taiwanese companies may be involved in business with Huawei, which may not related to US sanctions.

Aside from these, Huawei has been researching semiconductors for quite some time. As a result, the tech firm launched the Mate 60 series flagship phone last month in China. The phone is catching attention on all sides. However, the spotlight is actually garnered by its chipset, which supports a 5G network.