THE Huawei faces an uncertain future in the smartphone and mobile device market, and the United States of America continues to be unable to do business with US companies. As such, the Chinese manufacturer will now have established a partnership with the chipmaker. SMIC with a view to building your own processor factory and semiconductors.
Given that the US blockade will not be eased in the near future, in fact, the opposite scenario is just as likely, or more likely, that Ren Zhengfei’s company has rethought its strategy so as not to be totally outmatched by other rivals.
Huawei will want its own chip factory with the help of SMIC
Being so, according to new rumors, Huawei will partner with local manufacturer SMIC to build a new factory for semiconductors, processors and other chips needed for mobile devices.
The report mentions Huawei’s chip design and design capabilities, as well as SMIC’s production capabilities. However, it is important to remember that factories with semiconductor production capacity are rare in the world.
Therefore, if Huawei and SMIC (Semiconductor Manufacturing International Corporation) reach an understanding effectively, a new semiconductor factory could be born in mainland China.
Both companies, Huawei and SMIC, are included in the US blacklist.
Since both companies are on the US blacklist, the partnership could benefit both technologies. Huawei would thus have a greater chip production capacity for its products. Something that would undoubtedly help alleviate the difficulties derived from the blockade and the sanctions imposed by the United States.
Currently, Huawei is severely constrained when it comes to semiconductor production. Something that has also been affecting its position in the market, in addition to compromising its access to other crucial technologies for its services and equipment such as mobile devices.
Also according to the report of the Huawei Central, SMIC is the most advanced Chinese entity in chip production. It is, in effect, a foundry with the know how to produce, for example, wafers at 7 nm. It is also a company partially supported by the Asian country in question.
New chip factory could be born in Shenzen, China
Also according to the same source, the indicated investment is US $ 10 billion by Huawei. That being said, we have an advanced factory, equipped with the most modern production lines. We don’t know who will own the factory though, but considering the suggested investment, it should fall to Huawei.
In any case, the new facilities could be managed by both Chinese entities. However, we have to wait for more information to assess the exact scope of this alleged partnership between Huawei and SMIC.
