Huawei is building a new Chip Factory in Shanghai to counter US Sanctions

Huawei is building a new chip factory in Shanghai China as another step ahead to counter US Sanctions. This is inline with the company’s plans to secure its semiconductor supplies which have for the past year attracted new lows due to US-China influenced sanctions.

With the new plan currently under architectural reviews, Huawei will start off its production line with 45nm chips early next year, then shift up to 28nm chips by late 2021. Since 5G is a core service offering by the company, 20nm Chips will be manufactured at the plant by late 2022.

However, the company’s mobile division will not be catered for at the new factory. This is due to the fact that Smartphone chipsets need to be produced with more advanced technology nodes. Currently, the company’s flagship processor uses Kirin 9000 built on 5nm process nodes.

As noted by an anonymous source to FT, If Huawei succeeds with great chipsets for its mobile division produced at 28nm nodes, it will be a new sign of innovation and sustainability.

” If it succeeds, it can become a bridge to a sustainable future for their infrastructure business, in combination with the inventory they have built and which should last for two years or so. “

Industry chipsets like the Apple A14 Chipset, Qualcomm, and Samsung Processors are crafted with 5nm technology meaning 28nm would be a lower standard braced by Huawei. Likely, 5G Equipment chipsets are often made at 14nm processes contrary to Huawei’s plan of 20nm Standards.

Hence, since Huawei scrapped production of HiSilion Kirin Processors due to US Pressure to TSMC –– A Taiwan semiconductor manufacturer, the company seeks to reimagine its future with a new factory since US Sanctions have struck a Huge loss to the company even with innovative paths in place.

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