The plant will actually be operated by Shanghai Integrated Circuit R&D Center Co., Ltd., which is supported by the Shanghai Municipal Government and is a partner of Huawei.

Huawei plans to build a chip manufacturing plant in Shanghai that does not use American technology.

According to reports, Huawei plans to build a chip manufacturing plant in Shanghai that does not use American technology. Because Huawei lacks chip manufacturing experience, the plant will actually be operated by Shanghai Integrated Circuit R&D Center Co., Ltd., which is supported by the Shanghai Municipal Government and is a partner of Huawei.

It is reported that the factory will start with low-end 45-nanometer chips, and aim to achieve 28-nanometer chip manufacturing by the end of next year, and upgrade to 20-nanometer chips for 5G telecommunications equipment by the end of 2022. The 45-nanometer process was used to produce the A4 chip used in Apple’s iPhone 4 10 years ago. At present, Huawei Mate 40 series is equipped with 5-nanometer Kirin 9000 chip.

Affected by the ban, Huawei’s high-end mobile phone chips have been cut off. TSMC has been unable to supply 5nm chips to Huawei since mid-September, and Qualcomm and MediaTek have also been unable to supply Huawei Supply.

In order to solve the chip crisis, Huawei has considered finding alternatives. However, currently the largest chip manufacturer in Mainland China SMIC’s most advanced process is 14nm, which is far behind the cutting-edge 5nm process. In the long run, it cannot meet Huawei’s needs. What is more serious is that SMIC has also been blocked by the United States recently. Some suppliers have been tightened to supply SMIC and cannot supply without permission.

Editor-in-chief’s comment: Huawei, which suffered a chip crisis, began to save itself. Since you can’t rely on foundries, then shift from self-research to R&D and manufacturing. Compared with previous self-developed OEMs, the self-developed + manufacturing model is much heavier, and manufacturing is not Huawei’s strong point. Therefore, cooperation with experienced third parties such as R&D centers is a more reasonable choice…

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