Huawei has managed to take over the chip supply chain in China as well, as, according to a new report, the firm now operates multiple facilities under different subsidiaries.
Huawei's Hold Over The Chinese Supply Chain Keeps Getting Stronger; Now Gets Its Own Chip Supply And R&D Resources
There's no doubt that Huawei has evolved tremendously over the last few years, from a mobile-dominant firm to a state-driven tech giant with divisions responsible for almost every mainstream technology. Especially with the advent of AI, Huawei has been pretty active in developing capable hardware, and the firm has now been involved in having its chip production lines as well. According to a report by The Elec, Huawei operates around eleven different fabs across the nation and is responsible for foundry and DRAM production.
Interestingly, Huawei has named these fabs in a way that they look completely unrelated to the Chinese tech giants, and according to the report, many of them are state-backed as well. Examples of Huawei's chip facilities include Qingdao Si’En in the city of Qingdao, and many of the firm's operations are more focused in Shenzhen, where Huawei operates PST, PXW, SWX, and PJHT. The naming is kept so that operations look discrete, yet completely fulfill what the tech giant wants from them.
It is claimed that out of the eleven fabs being run by Huawei, at least five can manufacture 7nm chips, putting them on par with China's biggest semiconductor firm, SMIC. These facilities are equipped with massive production capacities, mainly since what Huawei needs from them is high production numbers, given the demand the company faces. The Chinese tech giant has completely "vertically integrated" its supply chain, offering its SoCs in mobile and AI accelerators. It needs huge production numbers from these fabs.
There's no stopping Huawei for now, at least regarding the firm's ambitions. Not only has the firm managed to create an ecosystem for clients and manufacturers, but with vast R&D resources along with state backing, the Chinese tech giant is poised for more growth.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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