Huawei will start producing its microchips, which can be used in most of its devices based on 5G technology. It will allow the company to no longer depend on American technology.

China May Impose Sanctions Against Nokia and Ericsson
China will impose retaliatory restrictions on the two largest European telecommunication-equipment manufacturers, Nokia and Ericsson, if the European Union prohibits Huawei 5G networks in the EU.

Since Huawei has no experience in fabricating chips, the plant would be run by Shanghai IC R&D Center. It would be necessary to replace all the equipment with the one developed in China to overcome U.S. sanctions.

Taiwanese company TSMC Stops New Huawei Orders After U.S. Restrictions
Taiwanese company TSMC, the largest manufacturer of semiconductor products, has stopped accepting new orders from Huawei Technologies. The decision was made due to the new requirements of the U.S laws.

Thus, the Chinese giant can limit its dependence on American chips and guarantee the supply of all the necessary elements.

The U.S. authorities allowed the companies to supply processors from the Chinese company Huawei, but on the condition that the chips should not be used in 5G equipment of the Chinese brand. Also, U.S. President Donald Trump has extended an order that prohibits U.S. companies from cooperating or buying telecommunications equipment from companies that threaten national security. The duration of the restrictions for Huawei was extended until May 2021.

The UK Bans Huawei From Its 5G Network
The United Kingdom announced that all 5G network equipment produced by Huawei would be banned from the country’s 5G network.

According to the plan, at first, the plant will conduct experiments on low-end 45nm chips production. By the end of 2021, Huawei expects to produce more advanced 28nm chips for "Internet of things" devices. Then by the end of 2022, Huawei aims to produce 20nm chips for 5G telecom equipment.