Huawei wants to build local chip production factory and industry should support

Huawei seems concerned over its SoCs production as its own HiSilicon subsidiary cannot print new chipset. This is due to the U.S. ban and if not, then the lack of foundry that could produce new chip design.

It was reported that Huawei already has established its first wafer factory in Wuhan and begin production in 2022. Also, the company plans to manufacture the optical communication chip and module initially to achieve self-sufficiency.

Why Huawei needs its own chip foundry

According to the info, the former Minister of Industry and Information Technology, Li Yizhong has asked the industry to understand the need and support Huawei’s self-developed chip production line.

He has also stated that the supply chain blockade is not a temporary problem and it will require a long time to get fixed. Meanwhile, China should take its own precautions to overcome the situation, which will become a big problem in the future.

The U.S. sanctions prohibit Taiwan Semiconductor Manufacturing Company (TSMC) from printing new Kirin chipsets. The lack of required chispet leads Huawei to use chipsets from another chipmaker including Qualcomm without 5G.

These are the reasons why Huawei is interested in building its own chip manufacturing line. However, the entire chip production procedure can not complete without the support of the supply chain industry.