Huawei is apparently planning to build a new fab manufacturing plant in China. The new site will be built in partnership with SMIC (Semiconductor Manufacturing International Corp) and will cost tens of billions of dollars.
The news arrives from Media reports in China, which claim that the smartphone and telecommunications based giant will be setting up a new fab site in Shenzhen. For those unaware, SMIC is China’s largest wafer fab and contract chipmaker. Thus, Huawei will leverage SMIC’s expertise in semiconductor production technology along with its own chip designing capabilities. Notably, the brand also sought TSMC‘s supply chain for cooperation to help grow its semiconductor proficiency via funding.
Additionally, the report also stated (Via HuaweiCentral) that “Recently, Huawei has come to us to help build a fab in the mainland.” It further added that the company’s primary focus at the moment is to acquire an ample amount of equipment and plant resources to reach mass production levels. So, Huawei has reached out to members of the “TSMC Alliance.” This, in turn, would help accelerate setting up its fab while also shortening the time to enter mass production.
Interestingly, the company is even looking for partners to promote its semiconductor production plans. As of right now, the investment amount for this major project is still unknown, although, the company is expected to receive official support as well. For those unaware, US sanctions had cut off Huawei from its primary chip supplier TSMC, so it arrives as no surprise that the company plans to build its own chip plant.
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