China blacklists major chip research firm after report on Huawei

Beijing has banned semiconductor research firm TechInsights from working with or receiving data from Chinese entities, in a move that could further obscure the country’s chip industry.

China’s Ministry of Commerce, citing national security concerns Announce On Thursday, TechInsights was designated an “untrusted entity,” prohibiting Chinese individuals or organizations from sharing information with the Canadian-based company.

TechInsights is known in the global technology space for its in-depth coverage of Chinese-made chips, and was among the first to report on breakthroughs made by companies like Huawei Technologies.

Beijing’s crackdown on TechInsights came less than a week later The company revealed An analysis of Huawei’s latest AI chips found components sourced outside mainland China.

TechInsights did not respond to a request for comment from CNBC outside normal business hours, while Huawei did not immediately respond to an inquiry about TechInsights’ report.

TechInsights’ findings about Huawei’s latest ‘Ascend’ AI chipset were consistent with those of other research firms such as Quasi-analysisWhich said that the Chinese company relies on technology from memory chip makers such as Samsung Electronics and contract chip maker Taiwan Semiconductor Manufacturing Company (TSMC).

These companies are subject to US export controls, which prevent them from selling their most advanced technologies to Chinese customers. Moreover, Huawei has been placed on the US trade blacklist Since 2019And preventing chip makers that deal with the United States from working directly with it.

In response, Beijing and its chipmakers have stepped up efforts to build a self-sufficient semiconductor supply chain.

Huawei, one of China’s leaders in these efforts, has been developing alternatives to US chip giant Nvidia, although recent findings by TechInsights may be seen by some as a blow to these efforts.

Despite its prominence in China’s chip space, few details have been revealed about Huawei’s chipmaking efforts outside of what outside research firms reveal.

For example, Huawei has reportedly been working closely with China’s leading chip foundry SMIC – a competitor of TSMC – although the two companies have remained silent on any cooperation since Huawei was placed on a US trade blacklist.

Last year, TechInsights It is said A Huawei product was found to contain a chip component from TSMC, raising questions about the effectiveness of US export controls. The research firm’s latest findings on Huawei’s AI chip may heighten such concerns.

Analysts say Chinese chip companies exploited loopholes in US restrictions and relied on inventories of imported chips and components before certain restrictions were imposed.