Huawei may be evading US sanctions through a small start-up: Report

Huawei, one of the major names in global tech companies may be evading US sanctions through a little-known start-up in China. USA blacklisted Huawei, a Chinese company, in 2019 viewing it as a military and economic threat. The blacklisting meant that Huawei's ability to acquire Americam semicondutors and using American technology to make chips was severely restricted.

But now, the Chinese company may be trying to circumvent the sanctions and acquiring components required to make microschips, said a report in Bloomberg.

As per the report, a startup named Pengxinwei IC Manufacturing Co (PXW) has placed orders for such components. The startup is based in Huawei's hometown of Shenzhen. Huawei is reportedly providing support to PXW to set up a semiconductor manufacturing unit. What's more, a former Huawei executive is running the startup.

USA blacklisted Huawei in 2019 and even pressed allies like UK and Japan to take steps to eliminate Huawei's presence from their tech sphere. Because of this, there are obstacles for Huawei to import components from these countries.

PXW however, may not face such hurdles. Bloomberg said that the company may be able to acquire components from Japan with lesser hassles that what Huawei would have to go through. In a statement mentioned in the report, PXW said that it had inked deals with suppliers and intends to start production in 2025. It did not mention who would be its clients but it is being expected that Huawei will buy most of the output.

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