HUAWEI key player in China’s push for semiconductor independence: Report

Bloomberg’s recent report sheds light on HUAWEI Technologies Co., which, after facing U.S. sanctions, has become a pivotal force in China’s semiconductor battle.

HUAWEI’s involvement in China’s chip industry goes beyond known roles, as it not only serves as a major chip customer and designer but also supports smaller firms in the chip supply chain, discreetly avoiding U.S. restrictions.

HUAWEI’s role extends further than acknowledged, encompassing its status as a primary chip customer and influential designer.

The company now offers engineering expertise and financial aid to smaller entities in the chip supply chain.  Notably, these contributions remain undisclosed to bypass U.S. restrictions triggered by HUAWEI’s involvement.

Unprecedented State Backing

The Chinese government has notably backed HUAWEI’s semiconductor endeavors. A Shenzhen city government fund supports a network of enterprises aiding HUAWEI in building a self-sufficient chip network.

A $30 billion state-sponsored project further assists HUAWEI in establishing chip fabrication facilities, highlighting an unusual collaboration between the state and industry.

Contrary to HUAWEI’s denial of government support for semiconductor development, Bloomberg’s report suggests otherwise. The decision to position HUAWEI as a key player in China’s chip industry stems from a direct order at the highest government levels.

HUAWEI, considered a rare national champion, is crucial for China’s semiconductor ambitions, preventing overreliance on external technologies. While HUAWEI’s recent successes, such as the Mate 60 Pro smartphone launch, showcase China’s technological progress, concerns in Washington arise.

The U.S. worries about advanced semiconductors being repurposed for military use, intensifying tensions between the two nations. As the U.S. aims to contain China’s defense capabilities, HUAWEI’s technological prowess becomes a focal point.

HUAWEI and China’s Semiconductor Future

The network supporting HUAWEI includes the Shenzhen Major Industry Investment Group Co., operating with state capital. This fund plays a vital role in facilitating HUAWEI’s collaboration with chip making entities, emphasizing the close relationship between Huawei and the various entities fueling China’s chip industry.

As HUAWEI evolves into a key player in China’s semiconductor ambitions, its trajectory becomes inseparable from China’s technological rise, shaping the future of the global semiconductor landscape and world economy.