It has become clear that Huawei is developing its own advanced semiconductor manufacturing base in Shenzhen under the headwinds of US sanctions, and attention is being paid to China’s technological independence and acceleration of AI chip development.
🟦 Huawei to build advanced semiconductor factory in Shenzhen – 7nm chip manufacturing in Shenzhen?
Huawei, a major Chinese telecommunications equipment company, is taking the initiative to develop an advanced semiconductor manufacturing plant for artificial intelligence (AI) and smartphones in Shenzhen, according to media reports. The project, which will be under construction from 2022, aims to bring chips compatible with the 7nm process in-house, and also looks at the production of Huawei’s own AI processor “Ascend” and SoCs for smartphones.
In addition, some of the factories are operated by start-up companies that are said to be closely related to Huawei–SiCarrier, a semiconductor manufacturing equipment, and SwaySure, which develops memory chips, and the construction of an AI supply chain that completes everything from design to manufacturing equipment in Japan is being built.
🟦 State-Led Semiconductor Self-Reliance Strategy and Countering U.S. Sanctions
The background to this initiative is the export restrictions imposed by the United States since 2019. Transactions with TSMC and ASML were banned, and Huawei was severely constrained in the production of high-performance chips. In the past, we relied on contract manufacturers in China, such as SMIC, but faced with the limitations of our manufacturing capacity and the challenges of mass production, we turned to building our own manufacturing system.
In addition, there has been an influx of capital, talent, and technology with the support of sovereign wealth funds and local governments, and while these startups are formally independent, they function as part of Huawei’s indirect support system.
🟦 Summary
In Shenzhen, Huawei has established a manufacturing base in Shenzhen that aims to in-house production of 7nm semiconductors for AI and smartphones, and has become a symbol of China’s technological independence and resistance to U.S. sanctions.
It is very ironic that in the midst of the failure to achieve the initial goals set by “Manufacturing 2025”, the headwind of external pressure is actually the driving force behind in-house production of technology.
