Since May 2019, Huawei has been operating under the shadow of the US ban. The company's access to American technologies, on which it depended significantly, was completely cut off a year later when the US revised its sanctions. The Chinese IT giant has recently begun to increase the manufacturing and production of its own chipsets.
The company is in discussions to establish a new chip manufacturing unit in Shenzhen, China, according to recent reports in Chinese media. SMIC (Semiconductor Manufacturing International Corporation) will assist in the implementation of the new site. The project is expected to cost tens of billions of dollars, according to initial estimates. It is believed that money is not an issue for Huawei.
SMIC is mainland China's largest contract chip producer. Huawei intends to merge SMIC's semiconductor manufacturing capabilities with its own chip creation method, according to reports. The brand also sought partnership with Taiwan Semiconductor Manufacturing Company (TSMC) supply chain in order to build independent chip manufacturing capabilities with government backing.
SMIC was quoted in the report as stating, "Recently, Huawei has come to us to help develop a fab on the mainland." Huawei's main priority, according to the remarks, is to acquire the necessary equipment and resources in order to begin high-level mass manufacturing.
As a result, Huawei has contacted members of the "TSMC Alliance." As a result, the process of building up its manufacturing factory would be sped up, and the time it took to reach mass production would be cut in half. Aside from chip production, the project intends to provide chip design tools, semiconductor materials, and compound semiconductors, all of which are necessary for chip manufacturing.