Huawei bats for China chip plant amid US sanctions, says report
BEIJING: As its production and operations face significant challenges due to trade restrictions imposed by the US, Huawei is reportedly pushing for setting up of a dedicated chip plant in China which can help reduce dependence on foreign technology for running its core telecom infrastructure business.
Shanghai IC R&D Centre, a chip research company backed by the Shanghai Municipal government will run the plant, the Financial Times reported on Sunday, citing people familiar with the matter. The project is reportedly focusing mainly on chips needed for the infrastructure business, not the smartphone business.
The plan is to start with low-end 45nm chips and acquiring expertise for developing 20nm chips in two years so that its 5G telecoms equipment business can continue even in the face of US restrictions, said the report. While Huawei and IC R&D Centre did not confirm the plans, Chinese newspaper Caixin reported on the project last month. Huawei late last month said that it generated a revenue of 671.3 billion yuan ($98.57 billion) in the first three quarters of this year, an increase of 9.9 per cent over the same period last year.
The results showed that restrictions imposed by the US slowed down growth of the Chinese technology giant as duriing the same period last year, the company reported revenue growth of 24.4 per cent. (IANS)
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