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China’s largest chipset maker – SMIC responds on partnership with Huawei
Recently the news of Huawei and SMIC’s partnership to build new chipsets has been running wild on the internet. Some industry analyst has already been called this chipset manufacturing partnership a rumor and now, SMIC itself has jumped on this matter and responded to a question on Huawei.
SMIC said on an investor interaction platform that the semiconductor industry is attracting more attention from many companies from various fields and channels. Meanwhile, the company said it will only make any official announcements through its official channels.
The statement is a bit ambiguous but it hits right into the core of the matter without letting us know what’s actually going on the background.
Rumor:
A previous report reveals people related to this matter from Huawei said that the above content is false and many people close to SMIC said that the chipset maker has never participated or assistant Huawei in building chipset manufacturing factories.
The sources further added that the cooperation between the two large Chinese firms is on the regulatory business model of foundry level in “type development”.
Precision Factory:
In December 2021, Huawei has established a new firm called Huawei Precision Manufacturing Co. LTD on December 28, 2021. The company has put Li Jianguo as the face of the registered firm and total capital of 600 million yuan (over 93 million USD).
The business scope of this company includes:
- Optical communication equipment manufacturing
- Optoelectronic device manufacturing
- Electronic component manufacturing
- Semiconductor discrete device manufacturing
and more.
Related to this, some internet users are expecting that Huawei is preparing to make its own chipset in the near future.
Meanwhile, industry insider believes that Precision Manufacturing has a certain level of mass production and small-batch trial product capability. Therefore, the product range will mainly be used to meet the system integration requirement of Huawei’s own products and services.
As some of Huawei’s own personal said that the company does not produce chipsets. However, the aim of precision manufacturing of some core devices, modules, and components of Huawei wireless, digital energy, and other products includes assembly, packaging, and testing.
The related person also mentioned that the semiconductor, discrete devices mentioned in the business scope are mainly for packaging and testing of related devices.
(via – Sina Finance)