There is news of Huawei building its own chips next year (2022) in an attempt to minimize its dependency on foreign vendors. The Chinese tech giant will build its wafer fabrication manufacturing company in Wuhan. And start chip production in stages next year.
The news of Huawei manufacturing its own chips has been in news since US sanctions limited chipset transactions. Now, it seems the company has fully prepared for it. Huawei has also embarked on its new journey with the HarmonyOS 2. Additionally, strengthening its position as telco vendors also require, in-house chips to meet the chip demands. Huawei will need these chips for 5G, smartphones, and IoT devices.
Reports tell that the Wuhan-based semiconductor factory has produced optical communication chips and modules for self-use. The company reportedly employees about 10,000 R & D personnel. Their duties involve developing optical communication equipment, HiSilicon chips, and automotive laser radars.
Several media have reported that the Wuhan factory used to produce optical communication Kirin chips and modules to achieve self-reliance and create microcircuit designs. Huawei’s chip designing subsidiary has the capability to design advanced chip designs. This means, Huawei’s subsidiary, HiliSilicon has all the necessary resources to manufacture advanced chips. Huawei will initially invest a CNY 1.8 billion into the project.
There is no definitive information regarding Huawei’s chipset size but media have largely reported that the Chinese company will produce either 45nm or 28nm chipsets. But if that is to be true, it would be underwhelming.
The said chips could help in IoT and TV business but certainly not in smartphone productions. In times when its rivals are competing with 5nm chips, Huawei simply justifies with a chip that will undermine its own competitiveness. However, we would find more detail in coming days.
Huawei Steadily Marching
After the US ban, semiconductors were restricted from selling their chips to Huawei. Add to that, the loss of Google Services on its smartphones has plunged its mobile businesses over the two years. However, Huawei seems to have reaffirmed itself. Its latest moves indicate that it is steadily moving away from the US ban and thinking big.
Recently, Huawei launched its HarmonyOS 2 with a range of products and soon added support for 100 devices to make a switch from Android. Its second-gen OS will bring cross-device compatibility among handheld as well as IoT devices. Meanwhile, it still possesses huge clout in Asia and some western states for telecom gears and smartphones.
If Huawei manufacturers own chips and gains self-independence to reinforce its IoT and smartphones business further, it could fully leave the US ban behind. With its homemade chips, 5G gears, and smartphones, we can see Huawei staging a greater comeback around the globe. Here is the Annual report of Huawei for the year 2020.
What is your opinion on Huawei’s attempt at manufacturing its own chips? Should they have done it earlier? Let us know what you think in the comments below.