Home NEWS Huawei plans chip production plant in Shanghai to overcome US ban

Huawei plans chip production plant in Shanghai to overcome US ban

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Huawei’s operations face great difficulties following the latest US ban, that cut access to chip supply,but now, if the report from Financial Times is to be believed, then Huawei may be planning a dedicated chip factory in Shanghai, China to overcome the restrictions imposed by the United States government and will be backed by the local government.

However, it’s noteworthy that the report adds that the chips plant by Huawei in China would be only for the core telecom infrastructure business and not the smartphone business.

The chips would be manufactured using the 45-nanometer (45nm) process and next year and towards late 2021, the company will be moving manufacturing to 28nm chips. It could also start making chips for Smart TVs and IoT devices. It plans to make 20nm chips by 2022 and would make almost every 5G cellular hardware.

The Chinese company is highly unlikely to get any smartphone-worthy chips from its new factory in the next few years and a 5nm process technology is wishful thinking at best. However, latest reports indicate that Qualcomm might be able to get a license and supply the Chinese giant.

According to reliable sources, Huawei has no plans to give up chips, including investment in chip production lines. After the launch of Huawei’s Mate 40, a Huawei executive revealed that Huawei had invested $20 billion in chip production.


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