Huawei planning chip plant in Shanghai that will not use US technology

Huawei is working on plans for a dedicated chip plant in Shanghai, China, that would not use American technology, enabling it to secure supplies for its core telecom infrastructure business despite US sanctions.

Two people briefed on the project said the plant would be run by a partner, Shanghai IC R&D Center, a chip research company backed by the Shanghai municipal government.

Industry experts said the project could help Huawei, which has no experience in fabricating chips, chart a path to long-term survival.

Industry experts said the planned local facility would be a potential new source for semiconductors after stocks of imported chips Huawei has been accumulating since last year ran out.

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The project, first reported by Chinese newspaper Caixin last month, could also jump-start China’s ambitions to shake off its dependency on foreign chip technology, particularly from the US, which wants to slow the country’s development as a technology power. – Copyright The Financial Times Limited 2020