Huawei reportedly bets on Shanghai chip plant to overcome US trade ban
Huawei might have a way to avoid some of the worst consequences of tightening US trade restrictions, provided it’s willing to be patient. Financial Times sources claim Huawei is planning a dedicated chip factory in Shanghai that would make parts for its core telecom infrastructure business. It would be run by a partner, the city-backed Shanghai IC R&D Center, and would be considered experimental until it’s ready to make chips Huawei can use.
The plant would start by making chips based on a very old
45-nanometer process before moving to 28nm chips by late 2021. That would be
advanced enough to make chips for smart TVs and Internet of Things devices, the
tipsters said. It would reach 20nm by late 2022, when it could make “most” of
its 5G cellular hardware.
Between this and a stockpile of chips, Huawei could
theoretically keep its telecom hardware business running with relatively little
disruption. While its chips from 2021 onward might lag behind international
rivals, they could be good enough for the domestic market until Huawei can
further improve its designs.
Huawei and the IC R&D Center both declined to comment to
FT, with the research firm calling the matter “rather sensitive.”
Huawei might not have to worry about its long-term future if
reports are accurate. As you may have noticed, though, there’s no mention of
phones in this plan. Mobile devices need highly advanced chip processes to
remain competitive at the high end (the Kirin 9000 in the Mate 40 Pro is a 5nm
chip), and the reported Shanghai plans wouldn’t help. Huawei can turn to
fabrication allies like SMIC for more modest phone chips, but it’s still likely
to scale back its phone offerings once their existing supplies dry up.
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