China’s Commerce Ministry has designated Canadian research firm TechInsights an “unreliable entity,” banning Chinese organizations from sharing information with it. The ministry cited national security, acting after a TechInsights report revealed foreign components were present in Huawei’s latest artificial intelligence chips.
The designation, announced Thursday, formally prohibits Chinese individuals and organizations from working with or providing data to the company. TechInsights is known in the global technology sector for its in-depth analysis of Chinese-made semiconductors and was among the first firms to report on breakthroughs by companies such as Huawei Technologies. This action could increase the opaqueness surrounding China’s domestic chip industry.
Beijing’s crackdown occurred less than a week after TechInsights published its findings on Huawei’s new “Ascend” AI chips. A technical breakdown of the processors found that they contained components sourced from outside mainland China. Neither TechInsights nor Huawei immediately responded to separate requests for comment regarding the blacklisting and the report’s contents, respectively.
The conclusions from TechInsights were consistent with independent findings from other semiconductor research firms. The firm SemiAnalysis, for instance, had previously noted that Huawei relies on technology from established memory chipmakers like South Korea’s Samsung Electronics and the contract chip manufacturer Taiwan Semiconductor Manufacturing Co. (TSMC) for its devices.
Both Samsung and TSMC operate under United States export controls, which restrict them from selling their most advanced technologies to customers based in China. Furthermore, Huawei has been on a U.S. trade blacklist since 2019. This listing specifically bars chip manufacturers that conduct business with the U.S. from engaging in direct work with the Chinese technology company.
In response to these ongoing U.S. restrictions, Beijing and its domestic chipmakers have intensified efforts to construct a self-sufficient semiconductor supply chain. Huawei is a prominent participant in this national initiative, actively developing alternatives to chips produced by U.S. industry leader Nvidia. Few specifics about Huawei’s chip-making activities are publicly disclosed outside of what third-party research firms uncover.
Reports have suggested Huawei works closely with China’s leading chip foundry, SMIC, a competitor of TSMC, though both companies have been silent about any collaboration since Huawei was placed on the U.S. blacklist. Last year, a separate TechInsights report found a TSMC component in another Huawei product, which raised questions about the effectiveness of U.S. export controls.
Analysts who follow the industry state that Chinese chip companies have navigated the U.S. restrictions by exploiting existing loopholes in the regulations. These companies have also utilized stockpiles of imported chips and components that were procured before the implementation of certain restrictive measures.
