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[Alpha Biz= Reporter Kim Jisun] The Biden administration is reportedly preparing to impose sanctions on Sophgo, a Chinese semiconductor design company suspected of facilitating the production of Taiwan Semiconductor Manufacturing Company (TSMC) chips found in Huawei's AI processors.

According to major foreign media reports on Friday, the U.S. government views Sophgo as a collaborator with Huawei and plans to include the company on its Entity List, a trade blacklist maintained by the U.S. Department of Commerce. Sophgo is a subsidiary of Bitmain, a supplier of Bitcoin mining equipment.

The controversy stems from the discovery of TSMC chips in Huawei’s Ascend 910B multi-chip system, which were reportedly ordered by Sophgo. This connection has raised concerns about circumventing restrictions on advanced chip technology.

Companies placed on the Entity List face severe restrictions, requiring U.S. government approval to access advanced technology or products. Such approvals are rarely granted.

Huawei has been on the Entity List since 2019, and in 2020, the U.S. government extended restrictions to prohibit the export of chips to Huawei, even by non-U.S. companies, without specific authorization.

Sophgo has yet to respond to the latest sanctions announcement. When the allegations first surfaced in October, the company denied having any direct or indirect business dealings with Huawei.

The U.S. continues to tighten its grip on Chinese tech companies amid rising tensions over technology and national security concerns, further escalating the global tech rivalry.

 

 

 

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