Huawei develops plan for chip plant to help beat US sanctions

Huawei is working on plans for a dedicated chip plant in Shanghai that would not use American technology, enabling it to secure supplies for its core telecom infrastructure business despite US sanctions.

Two people briefed on the project said the plant would be run by a partner, Shanghai IC R&D Center, a chip research company backed by the Shanghai Municipal government.

Industry experts said the project could help Huawei, which has no experience in fabricating chips, chart a path to long-term survival.

US export controls imposed in May and tightened in August leverage American companies’ dominance of certain chip-manufacturing equipment and chip-design software to block semiconductor supplies to Huawei.

The original full article can be found at ft.com

(Photo: REUTERS/Toby Melville)

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