Huawei's own chip factory to be built in Shanghai


Huawei's own chip factory to be built in Shanghai

One of the tech giants from China, Huawei plans to build a chip factory in Shanghai and according to news circulating that the construction of this factory will not use US technology. The move could secure supplies for industrial telecommunications infrastructure businesses due to US sanctions.

Industry experts say the project will be able to help Huawei, which has no experience in producing chips, and survive in the long term. US export controls imposed in May, then tightened in August using US companies' dominance of certain chip-manufacturing equipment and chip design applications, to block chip supplies to Huawei.

Reporting from the Financial Times, Monday (2/11/2020), the factory will be run by Huawei's partner, the Shanghai IC R&D Center. This is the Shanghai government-backed chip study industry. For some industry experts, the local facility will become a new source for semiconductors after the supply of imported Huawei chips that have accumulated since last year will run out.

The fabrication facility was initially going to experiment with making low-end 45nm chips. But according to information, Huawei wants to make a more sophisticated 28nm chip by the end of next year. This plan will allow Huawei to build smart TVs and other IoT features.

Huawei then aims to produce a 20nm chip by the end of 2022, which could be used to make most of its 5G telecommunications equipment. This plan is also intended to make industrial business sustainable, even though it is currently being sanctioned by the US.

A semiconductor industry executive said the plan for the new creation path would not help the smartphone business. The reason is that the chipset needed for smartphones requires more advanced technology nodes.

"But if successful, this can be a bridge to a long-term future for their infrastructure business, coupled with the inventory they have built and should last for 2 years or more," he said.