A Huawei spokesperson was contacted for a comment.
Huawei has faced increasingly stringent restrictions in recent years, leading to most US companies being barred from conducting business with them.
The company has become a focal point in the US-China trade war, with President Biden prioritizing restrictions on China’s tech sector to hinder domestic companies from acquiring cutting-edge semiconductors.
In October, the US took further action and prohibited the sale of manufacturing technology used to produce AI microchips, citing concerns about potential military applications.
Chinese firms can still purchase less advanced technology for chip production, but export licenses are seldom granted for sales to Huawei by US officials.
In response to the US ban, Huawei has developed in-house microchips and created its own software to support semiconductor design.
During a presentation, the Semiconductor Industry Association identified five Huawei-supported factories.
To counter the US sanctions, China has significantly increased domestic subsidies amounting to billions of dollars.
Although the country is still several years behind the US, Japan, and Taiwan, local companies are making strides toward more advanced microchips that are smaller and more powerful.
The US Department of Commerce stated, “It comes as no surprise that they have sought extensive state support to bolster the development of indigenous technologies.”
“The Bureau of Industry and Security [BIS] consistently reviews and updates its export controls in response to the changing threat landscape, and as demonstrated by the rules on October 7, 2022, it will not hesitate to take appropriate measures to safeguard US national security,” added the department.
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