The letter pointed to Chinese firms such as Pengxinxu, SwaySure Technology, and Qingdao Si’En as likely collaborators in Huawei's attempts to access US technology. The lawmakers emphasized the need to deny Huawei and similar companies access to US tech, warning that failure to act would harm national security.
While the US has broadly restricted sales of advanced chips and equipment to China from companies like Applied Materials Inc, Lam Research Corp, KLA Corp, and foreign suppliers ASML and Tokyo Electron, some Chinese companies have still been able to purchase mature chip equipment.
The goal of US export controls is to prevent China from developing a cutting-edge semiconductor industry that could bolster its military capabilities. The unveiling of a Huawei smartphone powered by a seven-nanometer chip from SMIC prompted calls for further restrictions.
The Commerce Department has already revoked licenses for US chipmakers selling to Huawei and is considering additional sanctions, which could include adding over 120 Chinese companies to the entity list.
US firms are concerned about the economic impact of further restrictions on China, a key market for chip equipment. ASML expects China to account for 20% of its revenue next year. However, US officials have struggled to gain support from allies like Japan and the Netherlands, who fear Chinese retaliation.
The lawmakers urged faster action to prevent Huawei from stockpiling tools to rebuild its supply chain, arguing that cutting off Huawei's suppliers would demonstrate US resolve in enforcing its export control policy.
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