Huawei plans to build a chip factory in Shanghai with the aim of 'made in pure China'


by

Kārlis Dambrāns

It was reported that Chinese telecommunications equipment giant Huawei, which has been virtually embargoed by the United States, is building a chip factory in Shanghai that does not use American technology.

Huawei develops plan for chip plant to help beat US sanctions | Financial Times
https://www.ft.com/content/84eb666e-0af3-48eb-8b60-3f53b19435cb

Huawei Eyes Building Own Chip Plant: Report --The Street
https://www.thestreet.com/technology/huawei-eyes-building-own-chip-plant-report

Huawei develops plan for chip plant to help beat US sanctions »News07trends
https://www.universalpersonality.com/huawei-develops-plan-for-chip-plant-to-help-beat-us-sanctions/

In May 2019, President Trump signed an executive order to ' ban the trade of foreign products at risk in information and communications ' and added Huawei to the embargo list (entity list) . The addition to this entity list has effectively banned the supply of American high-tech parts and software to Huawei. In August 2020, the Trump administration added 38 Huawei affiliates to the entity list, crushing Huawei's embargo evasion of 'procuring parts via a third party.'

US export control to Huawei and affiliates further strengthened, 38 new affiliates added to list-GIGAZINE



For Huawei, which did not manufacture chips in-house, the US embargo was a big blow. Huawei was waiting for the situation to improve by using the chips that arrived by 2019, but it is said that there is a movement to build a new dedicated chip plant in Shanghai.

According to the British economic newspaper Financial Times, Huawei's dedicated chip plant will be operated by the Shanghai IC R & D Center, a chip research company supported by the Shanghai People's Government, and Huawei will be a small business operator from September 2020. It has been pointed out that Huawei's high chip design capability and chip manufacturing capability in China will be combined because it has made a particular investment in the semiconductor sector it operates.



According to sources, Huawei plans to manufacture 28nm process chips for 5G communication-enabled Internet of Things (IoT) devices by the end of 2021 and 20nm process chips by the second half of 2022. Since chipsets for smartphones require advanced technology nodes, it is considered impossible to manufacture them at the new Shanghai factory. Huawei is reportedly aiming to build a sustainable infrastructure by operating its own chip factory in the predicament that new chips for communication equipment cannot be received.

In the end, Huawei is aiming not only to break away from the American technology that China depends on, but also to be 'pure Chinese'. However, semiconductor analyst Mark Lee said, 'Huawei wants a 14nm process chip for mobile network base stations, but a 28nm process chip can be substituted, so it will be sustainable by 2023. It would be possible to build the infrastructure, but it would take longer to complete pure Chinese equipment, as it would actually use foreign-made parts available on the market. ' I will.

A spokeswoman for the Shanghai IC R & D Center, which operates the new Huawei plant, told the Financial Times, 'It's a delicate issue and we can't provide information.'

in Hardware, Posted by log1k_iy