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BIS Investigating Whether YMTC Illegally Supplied Huawei, Report Says

The U.S. is looking into whether Chinese semiconductor manufacturer Yangtze Memory Technologies Co. violated U.S. export controls by supplying chips to Huawei, the Financial Times reported April 27. The report said the Bureau of Industry and Security received a “credible” report by TechInsights, a semiconductor analysis firm, that Huawei is using YMTC memory chips in a new smartphone. The chips were reportedly made in February 2021, several months after the U.S. applied its foreign direct product rule to Huawei, which restricts its ability to import foreign-produced goods made with certain levels of U.S.-origin content or technology (see 2005150058).

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A BIS spokesperson said the agency doesn't comment on potential investigations, but said it "vigorously reviews allegations of violations of the Export Administration Regulations to assess appropriate measures." YMTC didn’t immediately respond to a request for comment.