Huawei has been put on Entity List by the United States in May last year but the restrictions on the Chinese giant have tightened a few months ago, making it almost impossible for the company to make or procure chipsets or other necessary components.
But now, if the report from Financial Times is to be believed, then Huawei may be planning a dedicated chip factory in Shanghai, China to overcome the restrictions imposed by the United States government.
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However, it’s noteworthy that the report adds that the chips plant by Huawei in China would be only for the core telecom infrastructure business and not the smartphone business. The report claims that the plant would be run by Shanghai IC R&D Center and the company would consider it experimental until the chips can be used commercially.
The chips would be manufactured using the 45-nanometer (45nm) process and next year and towards late 2021, the company will be moving manufacturing to 28nm chips. It could also start making chips for Smart TVs and IoT devices. It plans to make 20nm chips by 2022 and would make almost every 5G cellular hardware.
The smartphone business from Huawei is also getting some relief as more and more companies are being granted special licenses by the United States to continue doing business with Huawei as long as the components are used for the core 5G telecom business. Many companies, including Intel, AMD, Samsung Display, and others have received the license to supply components to the Chinese giant.
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