China blacklists major chip research firm following report on Huawei
This photo illustration shows a Huawei logo on a smartphone with the Chinese flag in the background.
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Beijing has banned semiconductor research company TechInsights from working with or receiving data from Chinese entities, in a move that could increase the transparency of the country’s chip industry.
China’s Ministry of Commerce, citing national security concerns, announced On Thursday, TechInsights was designated an “untrusted entity,” prohibiting Chinese individuals or organizations from sharing information with the Canada-based company.
TechInsights is known for its in-depth coverage of Chinese-made chips in the global tech space and is among the first to report on breakthroughs from companies like Huawei Technologies.
Beijing’s crackdown on TechInsights comes less than a week later The company announced An analysis of Huawei’s latest AI chips revealed that components were sourced from outside mainland China.
TechInsights did not respond to a request for comment from CNBC outside normal business hours, and Huawei did not immediately respond to a question about TechInsights’ report.
TechInsights’ findings about Huawei’s latest “Ascend” AI chips were consistent with findings from other research firms. Semi-AnalysisHe said the Chinese company relies on technology from memory chip manufacturers such as: Samsung Electronics and contract chip manufacturer Taiwan Semiconductor Manufacturing Company (TSMC).
These companies are under US export controls, restricting them from selling their most advanced technologies to Chinese customers. Moreover, Huawei has been on the US trade blacklist since 2019, and chip manufacturers doing business with the US are prohibited from working directly with it.
In response, Beijing and chipmakers have stepped up efforts to create a self-sufficient semiconductor supply chain.
Huawei, one of China’s leading players in these efforts, has been developing alternatives to US chip giant Nvidia, but TechInsights’ latest findings could be seen by some as a blow to such efforts.
Despite China’s prominence in the chip space, few details about Huawei’s chipmaking efforts are disclosed, other than information uncovered by third-party research firms.
For example, reports say that Huawei is working closely with China’s leading chip foundry SMIC, a rival of TSMC; but both companies have been silent on any collaboration since Huawei was placed on the US trade blacklist.
Last year, TechInsights reportedly found that a Huawei product contained a chip component from TSMC, triggering questions about the effectiveness of US export controls. The research firm’s latest findings on Huawei’s artificial intelligence chip may further raise such concerns.
Analysts say Chinese chip companies are taking advantage of loopholes in U.S. restrictions and stockpiling imported chips and components before certain restrictions come into effect.
