- 0-20%: Unlikely - Lacks credible sources
- 21-40%: Questionable - Some concerns remain
- 41-60%: Plausible - Reasonable evidence
- 61-80%: Probable - Strong evidence
- 81-100%: Highly Likely - Multiple reliable sources
55%
Plausible
A smart tactic currently employed by companies to minimize the DRAM shortage risk is bringing in as many suppliers as possible, just like how Apple is doing by testing CXMT’s memory chips. However, Huawei has formed a different strategy, and with the help of various entities, the Chinese firm aims to circumvent the U.S. trade sanctions and the pitfalls of the AI boom by establishing its own memory manufacturing facility.
With the help of the government and Swaysure, Huawei could introduce its own DRAM manufacturing plant with a capacity of 140,000 wafers per month
Crucial details shared by @SemiconductorsX reveal that the Chinese government, DRAM chip maker Swaysure, and Huawei have formed a trio to set up a 12-inch memory production plant that won’t just shield them from the current supply shortage, but also provide the former Chinese giant with something to fall back on in case the Trump Administration has any funny ideas of blocking shipments from Samsung, SK hynix, and Micron.
The three aforementioned firms account for 95 percent of the world’s memory supply, which explains why the plant will initially kick off mass production of 28nm DRAM with a capacity of 140,000 wafers per month. To ensure that Huawei’s plan reaches fruition, a former TSMC director has been hired as CEO, not to mention recruiting an ex-Elpida executive as a strategist.
It should be mentioned that while Huawei has accumulated years of experience as a fabless semiconductor manufacturer, its expertise in DRAM production is limited, hence the inclusion of Swaysure in this partnership. The involvement of the Chinese government could expedite the approval of a production site and address any legal loopholes that might need to be addressed.
Moreover, it wouldn’t hurt Huawei to secure substantial government capital to realize its plans sooner. Looking at the current DRAM shortage, the company’s existing position will only harm its future smartphone shipments, as rising costs mean that devices will be more expensive to produce and will be out of reach for consumers.
The latest plan is expected to tackle myriad problems, and if supply isn’t disrupted by this plant, Huawei could be one of the first entities to acquire DRAM chips at lower prices.
News Source: @SemiconductorsX
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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