If the firm intends to supply Huawei, it would be severely restricted in what chipmaking equipment it can buy from American suppliers. It’s not clear whether PXW’s strategic plans explicitly violate US trade sanctions.
“BIS is constantly on the lookout for efforts to evade export controls, including those related to parties on the Entity List like Huawei, and uses open-source, proprietary and classified information to substantiate and then, when appropriate, apply our administrative or criminal law enforcement as well as regulatory tools to address violations.” The department is aware of the startup and “allegations of relationships with Huawei,” BIS said in response to a Bloomberg News query. The low-profile PXW has already drawn the attention of the US Commerce Department’s Bureau of Industry and Security, which helps oversee American trade restrictions. Huawei representatives declined to comment. If it succeeds in getting off the ground, the startup could effectively enable Huawei to sidestep Washington’s efforts to choke off the flow of chips to a company it views as a military and economic threat. PXW, as the company is known, plans to take delivery of the gear as early as the first half of 2023, one of the people said. Huawei is expected to buy most, if not all, of its output, said the people, who asked not to be identified discussing private information. The fledgling firm, Pengxinwei IC Manufacturing Co., is run by a former Huawei executive and is constructing facilities close to Huawei headquarters, according to public records and satellite photos. The Chinese technology giant is providing support to a startup in its hometown of Shenzhen that has ordered chipmaking equipment - including from foreign suppliers - for a semiconductor manufacturing plant, according to people familiar with the matter. Now Huawei may have a path around those restrictions. as a national security threat, it cut the Chinese company off from buying American semiconductors and other critical technologies. When the US government blacklisted Huawei Technologies Co.
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