After severe US sanctions against Huawei and numerous problems for the company, Huawei has now decided to build a chip factory in Shanghai for its 5G telecommunications equipment.
Following the US sanctions against Huawei, the company faced several problems in producing its smartphones in various sectors. One of the limitations that bound Huawei’s hands and feet was the company’s proprietary chips, the Kieran chips. Because of these restrictions, the Financial Times now reports that Huawei intends to build a dedicated chip factory in Shanghai and turn it into a core production facility for its business. Of course, it seems that the IC Research and Development Center of this city will run this factory until this factory can produce the chips that Huawei needs and can use.
The plant will first start with the production of old 45-nanometer chips, and then in 2021, will move to the production of 28-nanometer chips, which is a good option for smart TVs and IoT devices. The plant plans to acquire the ability to build 20-nanometer chips by the end of 2022 so that it can be used in most 5G telecommunications devices.
Theoretically, it seems that Huawei will be able to continue to build its telecommunications equipment until it prepares its chips, using the chips it has stored to date and before the sanctions. Of course, from late 2021 onwards, the company may face a shortage of chips.
That way, if the news and reports are true, Huawei will not have to worry about its future. Of course, as you can see, this report does not talk about smartphone chips, because smartphone chips have advanced manufacturing technology. In other words, powerful chips like the Kieran 900 used in the Huawei Mate 40 Pro is a 5-nanometer chip that Huawei and the Shanghai factory will certainly not be able to build at the moment.
