Skip to content

Secretive Chip Startup May Help Huawei Circumvent US Sanctions

  • PXW, run by an ex-Huawei exec, is building a fab to make chips
  • US tightens export rules as China tries to boost tech sector
Bloomberg business news
China Chipmaker PXW May Help Huawei Get Around US Sanctions

When the US government blacklisted Huawei Technologies Co. as a national security threat, it cut the Chinese company off from buying American semiconductors and other critical technologies. Now Huawei may have a path around those restrictions. 

The Chinese technology giant is providing support to a startup in its hometown of Shenzhen that has ordered chipmaking equipment -- including from foreign suppliers -- for a semiconductor manufacturing plant, according to people familiar with the matter. The fledgling firm, Pengxinwei IC Manufacturing Co., is run by a former Huawei executive and is constructing facilities close to Huawei headquarters, according to public records and satellite photos.