Huawei, the Chinese tech giant, is making a bold move towards achieving independence in chip development. According to a report by Nikkei Asia, the company is building a massive semiconductor research and development (R&D) facility in Shanghai with a staggering investment of $1.66 billion (12 billion yuan). 

This R&D plant is a cornerstone of Huawei’s grand plan to eliminate its reliance on foreign chipmakers. The company is aggressively recruiting top talent to expedite the process. 

Reports suggest they are offering lucrative compensation packages, reportedly double what local chipmakers provide. 

Huawei Chip Manufacturing

Additionally, Huawei is said to have successfully hired engineers with extensive experience from industry leaders like ASML, Applied Materials, Lam Research, TSMC, Intel, and Micron.

However, achieving self-sufficiency in chip development comes at a cost of employee well-being. According to an anonymous chip engineer, the work environment at Huawei is “brutal.”

It reportedly extends far beyond the already demanding “996” work culture (working from 9 am to 9 pm, six days a week). Instead, employees might have to face “007” hours – working around the clock, seven days a week, with no breaks.

While high salaries and incentives might entice some, such an intense work culture will burn out employees. To the extent that the engineer says, “The contract will be for three years, [but] the majority of people can’t survive till renewal.”

Currently, Huawei is relying on SMIC for its upcoming 5nm Kirin chip, with commercialization expected later this year. SMIC is also independently developing its own 3nm chip production capabilities for Huawei. 

Given these ongoing collaborations, SMIC is likely to remain a crucial partner for Huawei in the foreseeable future, at least until their R&D plant achieves full production capacity.

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