The illegal flow of Huida's advanced chips into China has caused concern. (Reuters)
[Compiled by Wei Guojin/Taipei Report] Bloomberg reported that according to several documents submitted to Beijing regulatory authorities, a financing company established by China's "National Semiconductor Industry Investment Fund" (commonly known as the Big Fund) provided funds for Chinese companies to purchase regulated Huida chips, highlighting the Chinese state's support behind the illegal transaction. Washington is worried that similar transactions are promoting the development of artificial intelligence (AI) in China.
Documents show that in the past year, Semi-Tech Leasing Group provided funds to a company called Glory View Technology to purchase more than 700 servers. One of the contracts clearly stated that 32 of them were Asus servers equipped with Huida B300 Blackwell chips.
The financing company, formerly known as "Sino IC Leasing", was established by China's major funds in 2015 to provide financial support for the semiconductor industry. It was renamed in June this year. After large funds sold majority shares in 2020, the company was majority-owned by Shenzhen, Beijing and other provinces.
These regulatory documents show that Washington’s export controls over the years have failed to curb related illegal transactions. B300 is Huida's powerful Blackwell series product. US regulatory authorities strictly prohibit the sale of this chip to China without explicit permission.
U.S. government agencies allege that black market middlemen took advantage of corporate due diligence loopholes and the government's weak law enforcement to smuggle billions of dollars in Huida hardware, including Blackwell chips, into China. The documents highlight a key dynamic in these illegal transactions: the Chinese government, at least in this case, is involved.
According to Chinese media reports, semiconductor technology leasing companies have expanded their business to data center infrastructure and have invested more than 11 billion yuan in "establishing an ecosystem covering model training, chips and other AI industry aspects." Since the company is not a listed company, it does not need to disclose the flow of capital expenditures.
Hongjing Technology is a listed company, and its business has expanded into the field of AI data centers in the past few years. In August 2025, the company signed more than a dozen contracts with Semiconductor Technology, borrowing 401 million yuan to purchase 171 servers. As of May this year, the two parties continued to engage in similar transactions. Hongjing Technology and its subsidiaries had borrowed a total of more than 300 million yuan to purchase more than 700 servers.
Except for the 32 ASUS servers of model XA NB3I-E12, it is not clear what kind of chips the other servers are equipped with. These chips are mainly installed in China Mobile's data center park in Zhongwei City, Ningxia.
