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© Huawei Business | November 02, 2020

Huawei looking to beat US sanctions with Shanghai facility

The Chinese company is reportedly working on plans for a new chip plant in Shanghai which would not use American technology – something that would enable it to secure supplier for its telecom infrastructure business even with the US sanctions.

The to be Shanghai facility takes aim at breaking up Huawei’s dependence on US technology. Two individuals briefed on the project told the Financial Times that the facility would be run by a partner – Shanghai IC R&D Center – a semiconductor research company backed by the Shanghai Municipal government. The US imposed export controls since May and has since tighten its restrictions on Huawei by limiting its access to US technology. If the company succeeds with setting up the project, its could be possible that it could function as a bridge to a – somewhat – sustainable solution for Huawei’s infrastructure business, the report continues. The planned facility would be a potential new source for semiconductors after stocks of imported chips the company had been stocking since last year ran out, industry experts told the paper. The plant will reportedly experiment with making low-end 45nm chips – a technology which chipmaking powerhouses started using some 15 years ago. However, by the end of next year, Huawei want’s to make 28nm chips, something that would allow the company to make smart TVs and other “internet of things” devices, the report continues citing industry engineers and executives familiar with the project. By late 2022, the aim is to produce 20nm chips, which could be used to make most of the company’s 5G telecoms equipment – which is turn would allow it to continue in the space even with the US sanctions.
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December 04 2020 2:16 pm V18.13.20-1