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US-China tech war
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Tech war: No 2 Chinese chip maker plays down report it faces crippling US trade sanctions

  • Hua Hong Semiconductor CFO Daniel Wang calls reports of potential US sanctions “completely inaccurate and baseless”
  • The Information reported this week that the US is considering restricting export of advanced equipment to Chinese chip makers

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A Hua Hong Semiconductor executive calls a report that Chinese chip makers face more US sanctions “baseless”. Photo: Shutterstock
Che Pan

China’s second-largest chip maker said its equipment procurement process remains smooth, calling a recent report that Chinese chip makers may face further US export restrictions “baseless”.

Hua Hong Semiconductor has been certified as a “validated end-user” of sensitive American technologies by the US government, said company president Tang Junjun during its first-quarter earnings call with analysts on Thursday.

Chief financial officer Daniel Wang added that Hua Hong has obtained approval from US authorities to import from the country.

The executives were responding to questions surrounding a report by The Information this week that Washington is considering banning American suppliers from selling advanced equipment to Chinese chip makers.
Such a move would tighten the screws on Semiconductor Manufacturing International Corp (SMIC), China’s top chip foundry, as well as Hua Hong Semiconductor, ChangXin Memory Technologies and Yangtze Memory Technologies Corp, all of which rely on core US technology to various extents to fabricate chips.

Wang said the report was “completely inaccurate and baseless”.

Hua Hong is proactively working to boost the monthly production capacity of its 12-inch fab in Wuxi, a city in eastern Jiangsu province, from about 65,000 wafers to 95,500 wafers. Any sanctions from the US could deal a blow to these plans.

Hong Kong-listed Hua Hong generated US$594.6 million in revenue in the first quarter, up 95 per cent year-on-year and 12.6 per cent from the previous quarter, according to its latest financial report released on Thursday.

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