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Chinese government reportedly funds Huawei and SMIC for chip development



Huawei SMIC Chinese funds

Huawei and SMIC reportedly belong to the top Chinese government recipients, in terms of funds. Perhaps, China is completely supporting the native companies to stand firmly against the foreign trading rules and the U.S. security-based restrictions.

According to the information, Huawei and SMIC began their efforts to develop 5nm chips to overcome U.S. restrictions on advanced chipsets. To achieve this goal, the Chinese authorities are helping Huawei and SMIC with sufficient funds.

A recent report by China’s local city government depicts that around 16 out of 191 major projects affiliates with semiconductor subjects and the authorities issued subsidies for them. Notably, both SMIC and Huawei count in this list.

The information further reveals that SMIC is currently working on two 300mm production lines in Shanghai for the mass production of 5nm chipsets. Meanwhile, Huawei in Qingpu district is looking after the research and development of the chipsets, wireless networks, and IoT.

Huawei SMIC Chinese funds

Notably, these activities are included in those 16 projects that are getting government funding. In addition, Huawei is considering recruitment of 35,000 researchers by June 2024, which can evenly contribute to the development of 5nm chips.

Funding Figures

After the U.S. sanction, China has significantly aided native firms with a good amount of grants. The region gave around 12.1 billion yuan ($1.75 billion) to Chinese semiconductor industries. Among them, SMIC is the highest-paid recipient with 1.95 billion yuan.

On the flip side, Huawei is getting around $30 billion for chip-making procedures. No doubt, constant support from the Chinese government has listed Huawei and SMIC in the highest funding recipients category.

Besides, the provincial government of Anhui said in an investment directive that it supports the native companies to obtain technology breakthroughs in the DRAM chip field this year. The authorities desire to catch up with global players like Samsung, SK Hynix, and more in this game.


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