The Biden administration is currently deliberating on adding several Chinese semiconductor companies connected to Huawei Technologies Co. to a blacklist. This consideration follows Huawei's significant technological advancement last year, a development raising concerns in the United States.
Implementing such measures would intensify the U.S.'s efforts to limit China's growth in AI and semiconductor sectors, placing increased pressure on a key Chinese company that has continued to make progress despite existing sanctions. This includes the creation of a smartphone processor last year, surprising many in Washington with its capabilities.
Sources indicate that the entities likely to face restrictions include semiconductor production sites associated or planned by Huawei, as noted in a report by the Washington-based Semiconductor Industry Association. Bloomberg News had earlier shed light on this report in 2023.
The companies under possible scrutiny for blacklisting are Qingdao Si’En, SwaySure, and Shenzhen Pensun Technology Co. (PST), along with ChangXin Memory Technologies Inc., a leading memory chipmaker in China. The move is seen as both feasible and justifiable by industry analysts, aiming to close loopholes in current export restrictions.
Additionally, the U.S. might also target companies like Shenzhen Pengjin High-Tech Co. and SiCarrier, which produce semiconductor manufacturing equipment, for their potential roles in assisting Huawei circumvent sanctions.
Efforts are also being made by the U.S. with allies in the Netherlands, Germany, South Korea, and Japan to enhance restrictions on China's semiconductor technology access. This forms part of a broader campaign to impede Huawei and, by extension, China's reliance on Western technological innovations.
While it remains uncertain when a final decision will be taken by U.S. officials, outcomes are likely influenced by the evolving dynamics of U.S.-China relations. Upcoming high-level visits and discussions between the two nations could serve as critical junctures in this ongoing technological and geopolitical contest.
The companies mentioned, along with relevant Chinese and U.S. governmental departments, have yet to comment on the matter. However, the Chinese Ministry of Foreign Affairs has expressed strong opposition to the U.S.'s disruptive actions against Chinese businesses.
Amidst these developments, Huawei continues to demonstrate resilience, having unveiled a new smartphone enabled by a domestically produced 7-nanometer chip, underlining the persistent technological tug-of-war between the U.S. and China.
