Huawei's $1.66 Billion Quest for Semi-Conductor Self-Reliance

The Digital Artisan

Apr 12, 2024 — 1 min read

Huawei Boosts R&D Investment to Overcome Technology Restraints

Huawei, the Chinese tech giant, is reportedly building a $1.66 billion Research and Development plant to become self-reliant in the semiconductor industry. The venture is an aggressive response to the restrictive export controls imposed by the U.S. Consequently, Huawei aims at reducing its dependence on foreign technology, despite facing the brutal realities of the highly competitive tech industry.

Employing Talent from Tech Giants

Huawei is said to have been generous with its salary packages, offering double what local chipmakers doled out. To expedite its self-reliance objective, the company has recruited veterans from the likes of ASML, TSMC, Intel, and Micron. Despite the benefits on offer, working at Huawei has often been described as 'brutal' by engineers due to the gruelling work schedules.

Sustaining Efforts Through Partnerships

China’s largest semiconductor manufacturer, SMIC, appears ready to lend a hand. Reports suggest that SMIC is setting up 5nm production lines for Huawei's future Kirin chipset. Additionally, SMIC is rumored to have an internal R&D team focused on mass-producing 3nm wafers using existing DUV equipment. Relying on SMIC seems a plausible strategy for Huawei until they succeed in running their plant at full capacity.

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