The Huawei chip designing unit, HiSilicon, has just signed a deal with a Chinese firm to strengthen its domestic supply chain. The local partner shared this news in an announcement earlier this week.
According to a NikkeiAsia report, Shenzhen JT Automation Equipment, a Chinese chip production equipment maker, stated that it has signed a five year long MoU (memorandum of understanding) with HiSilicon, China’s largest chip developer. The supplier added that “Huawei’s HiSilicon is stepping up efforts to push to build a domestic chip packaging and testing supply chain.” It further added that “Both parties aim to expand collaboration on semiconductor packaging tool development in a bid to solve the ‘neck-choking’ problem and realize a self-sufficient and controllable industry.”
This statement is likely related to the US sanctions that have disrupted the Chinese tech giant’s supply chain. For those unaware, JT was founded back in 2004 and is an equipment maker that supplies firms in the consumer electronics, automotive electronics, aviation, and even space and defense fields. At the moment, it supplies Gree, China’s largest home appliance maker, Haier, and Flex as one of its major customers.
Notably, the new deal is an effort from Huawei to strengthen its local supply chain and achieve self sufficiency that does not rely on foreign technologies. Its HiSilicon unit designs its proprietary smartphone chips, Kirin, and its other processors are also used in notebooks, servers, vehicles, TVs, and more. Thus, the deal would seek to offset the US sanctions and enable it to better compete in the global market again, especially for consumer electronic products.
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