Huawei, which is struggling to secure overseas semiconductor technology due to U.S. export restrictions, is reportedly constructing a large-scale factory that can carry out the entire semiconductor production process in China.
The Financial Times reported on the 4th (local time) citing satellite imagery analysis that Huawei has been building three semiconductor manufacturing plants in the Guangming District of Shenzhen, China, since 2022, with plans to directly operate one of them. It is said that the plants will produce 7-nanometer (nm) chips for smartphones and high-performance artificial intelligence (AI) processors 'Ascend.'
The other two plants are operated by chip equipment manufacturer SiCarrier and memory chip manufacturer SwaySure, but the industry sees them as effectively subsidiaries with Huawei’s investment and technical personnel involved. As a result, there are analyses suggesting that Huawei is pursuing a 'vertical integration' strategy to establish the entire semiconductor production process independently.
Since 2022, the U.S. has been regulating advanced semiconductor exports to curb the development of China's semiconductor and AI technology. In response, Huawei has been interpreted as seeking to secure independent technology to replace foreign companies such as Nvidia, ASML, SK hynix, and TSMC across all areas, from design to production, equipment, and memory.
Dylan Patel, founder of SemiAnalysis, assessed that 'Huawei is making an unprecedented attempt to resolve the entire supply chain, from semiconductor manufacturing equipment to AI model construction.'