Home NEWS Huawei requires suppliers to put chip production capacity in China.

Huawei requires suppliers to put chip production capacity in China.

According to the latest news, Huawei has put forward new requirements for suppliers to transfer their production capacity to China.

Huawei has asked foreign semiconductor suppliers to complete most of the expansion or capacity transfer in China by the end of 2020.

Semiconductor chips are divided into design, manufacturing, seal testing and other links. At present, design, manufacturing and other work are scattered in Europe, the United States, Japan, South Korea, Taiwan and other regions. In a short time, they cannot be transferred at will. Huawei now hopes that the last process of chip seal testing and other processes will be transferred to China, and PCB manufacturing will also be completed in China as far as possible.


In addition to requiring foreign suppliers to increase production capacity in China, Huawei is also actively supporting Chinese suppliers. Taking the sealing test as an example, Huawei reported that last year it sent more than 100 technical personnel to China’s largest sealing test factory director, Dianke technology, to assist rivals in technology upgrading, but the news said that the current progress is not as smooth as Huawei expected.

Huawei has suspended the verification of new suppliers until they are willing to increase production capacity in China or cooperate with production in China.

The source pointed out that Huawei’s strategy in the supply chain is to promote localization, and the suppliers with production capacity in China will receive Huawei’s primary support.

Surge is the Founder of Hms Arena.he lives in China and knows about China's mobile phone market.


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