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Huawei planning build its own chipmaking plant in China: Report



Huawei is working on plans to build a chip plant in Shanghai that would not use the U.S. made technologies and streamline it directly for the core businesses such as telecom equipment.

According to a report from FT, Huawei’s chip plant would be run by a partner, Shanghai IC R&D Center, a chip research company backed by the Shanghai Municipal government.

The new fabrication plant will begin manufacturing 45nm chip this year and 28nm chipset by the end of next year. People familiar with the matter said that such a plan would allow Huawei to make smart TVs and other Internet of things products.

Following this initial technology node, Huawei then aims to produce 20nm by late 2022, which could be used for the 5G network gear and allowing the company to carry its business operations without U.S. technology.

However, we cannot expect this production to help in smartphone chip production anytime soon.

“The planned new production line will not help with the smartphone business since chipsets needed for smartphones need to be produced at more advanced technology nodes,” said a semiconductor industry executive briefed on the plans.

“But if it succeeds, it can become a bridge to a sustainable future for their infrastructure business, in combination with the inventory they have built and which should last for two years or so,” he said.

Huawei’s semiconductor division – HiSilicon, already has a long experience in the chip designing industry and can develop its capabilities in chip manufacturing, equipment, and materials.

Meanwhile, Huawei has declined to comment on this matter but we’ll keep you updated with the matter.

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Most of Deng Li's smartphones are from the Huawei ecosystem and his first Huawei phone was Ascend Mate 2 (4G). As a tech enthusiast, he keeps exploring new technologies and inspects them closely. Apart from the technology world, he takes care of his garden.