Republicans Press Biden to 'Halt' Huawei Attempt to Circumvent U.S. Chip Export Ban

Chinese startup Pengxinwei (PXW) IC Manufacturing to build a chip manufacturing plant in Shenzhen. The GOP senators in a letter to Biden cited reports Huawei would likely buy most of the semiconductors made at the new factory, which would have capacity to produce chips of up to 14 nanometers. The first chips are expected to be available in the first half of next year. The other signers are: Marsha Blackburn of Tennessee, Tom Cotton of Arkansas, Ted Cruz of Texas and Bill Hagerty of Tennessee. “This would represent a dangerous leap in Chinese semiconductor manufacturing, as Chinese chipmakers have thus far only been able to produce 7-nanometer chips in limited quantities,” the senators wrote Biden. “With these new chips for its base stations, Huawei could resume its march towards 5G market dominance,” and the Chinese Communist Party “will advance its plan to control global telecommunications and extend its economic espionage and repression.” The lawmakers said they’re “deeply concerned that, despite the obvious threat that PXW poses, your administration has taken no official steps to delay the project’s progress, despite being aware of the project for some time.” The Bureau of Industry and Security’s “apparent inaction” in not already placing PXW on its entity list “is a dereliction of duty” given the company’s “clear connection with Huawei,” the Republicans said: “As far as we can tell, Commerce has not sent a single ‘informed’ letter to any entities potentially working with PXW, ordering them to halt all shipments to and transactions with the factory.” BIS and Huawei didn’t immediately comment.