Huawei Enhances Control of Chip Supply Chain; Operating Over 11 Fabs Across China for Foundry and DRAM Production

Recent developments indicate that Huawei has solidified its influence over the semiconductor supply chain in China, as corroborated by a new report highlighting the company’s operational control over various facilities through its numerous subsidiaries.

Huawei Expands Its Influence: Establishing Chip Supply and Research Capabilities

In recent years, Huawei has undergone a remarkable transformation, evolving from a mobile-centric company into a formidable tech powerhouse. This shift has been significantly driven by advancements in artificial intelligence (AI), prompting Huawei to invest heavily in sophisticated hardware development. According to a report by The Elec, the company now manages approximately eleven semiconductor fabrication plants (fabs) across China, contributing to foundry services and DRAM production.

Notably, Huawei’s strategy includes naming its fabs in a manner that obscures their affiliations with well-known Chinese technology firms. This approach not only ensures a sense of discretion but also enhances operational effectiveness. Among these facilities, the Qingdao Si’En fab in Qingdao, along with operations in Shenzhen—where Huawei oversees PST, PXW, SWX, and PJHT—exemplify this naming convention. The strategic branding allows Huawei to efficiently achieve its production objectives without attracting undue attention.

SMIC 5nm process showing incredible power efficiency

It is reported that at least five of Huawei’s operational fabs possess the capability to produce 7nm chips, positioning them alongside China’s leading semiconductor manufacturer, SMIC. These facilities are equipped with substantial production capacities, essential for meeting the substantial demand that is characteristic of Huawei’s product offerings. By achieving vertical integration in its supply chain, Huawei ensures a steady supply of System on Chips (SoCs) for mobile devices and AI acceleration technologies.

Huawei’s ambitions show no signs of slowing down. The company has successfully built an ecosystem for both clients and manufacturers while benefiting from significant research and development resources and state support. This places Huawei in a strong position for further expansion in the tech industry.

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