Huawei reportedly preparing Shanghai chip plant to overcome U.S. sanctions

Huawei is reportedly planning to open a chipset plant in Shanghai, China that makes parts for its core telecom infrastructure business.

The Financial Times reports that the factory would be run by a partner and be considered experimental until it can produce chips that Huawei can use. The government-backed factory would not employ any U.S. technology.

The report suggests that the plant will only build 45nm chipsets initially, and then 28nm chips by late 2021. Huawei is reportedly planning on making 20nm chips by late 2022.

With this new plan, Huawei could possibly keep its telecom hardware business running without significant disruption. It’s also worth noting that although its chips from 2021 and onwards won’t be comparable to international rivals, they could be good enough for the domestic market.

It’s possible that Huawei may be able to secure its telecom infrastructure business if the report is accurate. However, the report doesn’t indicate any of Huawei’s plans for its smartphones.

Since smartphones need highly advanced chips, the Shanghai factory wouldn’t be able to supply them. Huawei is expected to scale back its smartphone offerings once it runs out of its existing supplies.

Source: Financial Times Via: Engadget