## US Lawmakers Push for Huawei Crackdown Amid Semiconductor Ambitions
In a significant move aimed at curbing China’s technological advancement, U.S. Representatives John Moolenaar (R-MI) and Raja Krishnamoorthi (D-IL) have called on the U.S. Department of Commerce to crack down on Huawei Technologies. Their target? Huawei’s alleged efforts to bypass U.S. sanctions through a hidden network of semiconductor facilities.
The lawmakers’ concerns are laid out in a recent letter addressed to Commerce Secretary Gina Raimondo. The letter emphasizes the urgent need to restrict the flow of U.S. semiconductor manufacturing equipment (SME) to Huawei. They specifically point fingers at companies like Pengxinxu, SwaySure Technology, and Qingdao SiEn, which they claim are being used by Huawei to circumvent existing restrictions on its chip-making capabilities.
While PXW Semiconductor, a related entity, was previously added to the Commerce Department’s Entity List, Moolenaar and Krishnamoorthi argue that similar action is needed for its sister companies due to their close ties to Huawei. This appeal to tighten export controls comes at a time when Huawei is actively expanding its semiconductor production capacity, allegedly utilizing firms that aren’t currently blacklisted by the U.S.
The letter sheds light on the significant influence of the Shenzhen government-backed Shenzhen Major Industrial Investment Group Co., Ltd., which reportedly oversees both PXW and its affiliates, including SwaySure. The lawmakers believe that adding these companies to the Entity List would effectively limit Huawei’s access to crucial U.S. technology.
A Broader Tech War
This pressure on Huawei coincides with reports that ByteDance, the parent company of TikTok, may be using Huawei’s Ascend 910B chips for a new AI model. This shift towards domestic chips reflects ByteDance’s response to U.S. export restrictions, as they move away from reliance on advanced AI chips from Nvidia Corp. ByteDance has reportedly been stepping up its efforts to develop its own AI processors to overcome these limitations.
Meanwhile, ASML Holding N.V., a major supplier of semiconductor equipment, projected that China’s contribution to its revenue will normalize at 20% next year, down significantly from 49% in the June quarter. This reflects the changing dynamics in the semiconductor market, driven by factors like U.S. restrictions on AI chip sales. The company’s announcement, coupled with an accidental early release of its lowered sales forecast for 2025, led to a sell-off in semiconductor stocks.
What’s Next?
Tightening restrictions on Huawei’s chip-making capabilities would align with the broader U.S. strategy to curtail China’s access to advanced technology. Moolenaar and Krishnamoorthi argue that this step is crucial to prevent national security risks posed by Huawei’s expanding semiconductor ambitions.
This push for further action marks the latest development in a broader U.S. strategy to counter China’s advances in the tech sector. The implications of this move extend far beyond Huawei, affecting companies across the global semiconductor supply chain.