Lawmakers urge US Secretary to act against Huawei’s semiconductor development amid national security concerns

Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi of the Select Committee on the Chinese Communist Party (SCCCP) have urged the U.S. Secretary of Commerce Gina Raimondo to take immediate action against Huawei’s rapid development of semiconductor fabrication facilities.

They expressed concern that Huawei is attempting to conceal its involvement in these operations to circumvent existing American restrictions, according to a release from the Select Committee.

The lawmakers highlighted that these facilities depend heavily on U.S.-produced semiconductor manufacturing equipment (SME), presenting a crucial opportunity for the United States to impede Huawei’s ambitions, which they argue pose significant threats to national security.

The letter noted that Secretary Raimondo had previously raised alarms about Huawei’s chip manufacturing capabilities, calling reports of the company’s use of US SME to produce advanced semiconductors “deeply disturbing.”

Earlier this year, America’s Commerce Department took an important step by revoking licenses that allowed U.S. companies to ship chips to Huawei’s smartphone division. The lawmakers asserted that in addition to prohibiting Huawei from acquiring US chips, it is vital to restrict the flow of SMEs to prevent the company from fabricating its own chips.

They argued that limiting SME access to Huawei’s clandestine network of semiconductor companies would send a clear message to both the People’s Republic of China (PRC) and Huawei, reinforcing US export control policies. The lawmakers warned that failing to take action would only benefit a few American companies at the expense of global chipmakers, ultimately undermining US national security.

The letter identified several firms linked to Huawei’s clandestine chip network, including Pengxinxu, SwaySure Technology, and Qingdao SiEn, none of which are currently listed on the Commerce Department’s Entity List. They emphasized that these firms have close ties to Huawei and are believed to be part of the Shenzhen government’s efforts to enhance its semiconductor capabilities.

Given the potential risks associated with these entities, the lawmakers urged Secretary Raimondo to move swiftly to prevent Huawei from accessing U.S. technology that could compromise national security.

They commended the Commerce Department’s ongoing coordination with allies but expressed concern that prolonged negotiations may allow Huawei to continue stockpiling the necessary SME.

The group concluded by appreciating the actions taken by the Commerce Department to date and expressed eagerness to hear about future steps in addressing these critical issues.