Huawei Will Build Its Chip Plant to Overcome U.S. Sanctions

by Kay Lee

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.

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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.

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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.

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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.