Huawei wants to build up its own capacities for the production of CPUs or system-on-chip designs To Circumvent US Embargo.
Huawei still has a problem: although more partners are now allowed to supply the Chinese company with their products again, the USA is sticking to its sanctions for processors. To get around this, Huawei is now planning to build its own chip production facility.
As the Financial Times reports, citing a number of informed sources from the environment of the Chinese mobile phone equipment and smartphone manufacturer Huawei, the company wants to build up its own capacities for the production of CPUs or system-on-chip designs in a surprisingly short time. This would make the company independent of contract manufacturers such as TSMC, SMIC or Samsung, on which it has been dependent up to now.
The dependence on the availability of chips from large chip developers such as Qualcomm or MediaTek would also be eliminated by setting up its own production facilities. With the HiSilicon team, Huawei has already had its own capabilities for years to develop high-performance processors for smartphones and other devices, but until now it has always been necessary to use the services of contract manufacturers to have the chips built.
In-house production of smartphone chips remains a dream of the future for the time being
According to a report by the Financial Times, Huawei plans to set up its own chip production within a few years, although the SoCs produced in this way will probably not be able to compete with the ultramodern chips produced by third parties for the time being. While TSMC, Samsung & Co are now reliably building 7-nanometer chips and have started production of chips in the 5-nanometer scale, Huawei's own capabilities for chip production are to use significantly older technologies and supply correspondingly "larger" chips.
Initially, Huawei is said to want to build 45-nanometer chips that can be used for simple applications. Towards the end of 2021, Huawei is expected to start producing chips in the 28-nanometer scale that can be used for Internet of Things applications. According to Huawei's own plans, it will not be able to produce chips with a structure width of 20 nanometers until the end of 2022. These will then be used in telecommunications hardware for 5G networks.
Because Huawei has no experience in chip production, the company wants to use the help of the Shanghai IC R&D Center, which will operate the production facility. This is a specialized company supported by the Shanghai city government, which will enable local companies to set up their own chip production facilities.
Obviously, the products manufactured by Huawei's own chip production are not initially intended for use in smartphones, so the question of how Huawei intends to equip its devices in the future remains open.