Tech giant, Huawei has been under the scrutiny of US regulations, since the establishment of the US ban in May 2019. A year later, updated sanctions by the US completely cut the corporation’s access to American technologies, which the firm heavily depended on. Recently, the Chinese tech firm has begun to ramp up the fabrication and manufacturing of its own chipsets.
Huawei to Open a New Chip Fabrication Plant in Shenzhen to Overcome the US Ban
As per the recent reports from Chinese media, the firm is in talks to inaugurate a new chip fabrication plant in Shenzhen, China. The new site will be brought to action with the support of SMIC (Semiconductor Manufacturing International Corporation) after the US Ban on Huawei. According to initial phase predictions, the project will cost tens of billions of dollars.
The tech industry assumes that capital is not an issue for Huawei and SMIC is the biggest contract chip manufacturer in mainland China. According to the reports, Huawei intends to leverage SMIC’s expertise in semiconductor production and combine it with its own chip fabrication procedure to fight off US Ban.
Huawei is Also Seeking a Partnership with Taiwan Semiconductor Manufacturing Company
In addition to this, the brand also sought Taiwan Semiconductor Manufacturing Company’s (TSMC) supply chain for a partnership to expand self-sustaining chip production capacities through official allotments. The report also quotes SMIC saying “Recently, Huawei has come to us to help build a fab in the mainland.” The quotes also added that Huawei’s central focus is to develop adequate equipment and resources to begin high-level mass production.
Therefore, Huawei has reached out to members of the “TSMC Alliance.” This alliance would help accelerate the procedure of setting up its fabrication plant while decreasing the time to achieve mass production. In addition to chip manufacturing, the project further intends to manufacture chip design tools, semiconductor materials, and compound semiconductors, all of which are necessary for the company to fight the US Ban.
Source: Pro Pakistani