Huawei reportedly plans to build an advanced chip factory in China for AI and smartphones. The company’s intentions have been spotted in recently surfaced satellite images, highlighting its effort to boost growth in China’s chipset industry.
Over the past few months, Huawei has focused its attention on new AI chips and powerful phone processors to help China reduce its reliance on overseas facilities.
And the new move is seemingly not a different direction in this case.
Financial Times has showcased some satellite images that reveal Huawei has started building an advanced chip production factory for advanced AI and smartphones.
The report adds that Huawei is building a new chipset facility in Guanlan. A few people familiar with the matter say that the OEM plays a key role in three manufacturing sites in Guanlan. Huawei manages one of these sites for its 7nm phone and AI processors. It was the company’s first step towards high-end chips.
Other two sites come under chip tool maker SiCarrier and memory-chip maker SwaySure. As of now, Huawei is planning to add a mega-facility for chip production at the same location to meet Kirin and Ascend chip demands.
Dylan Patel, founder of SemiAnalysis, noted:
“Huawei has embarked on an unprecedented effort to develop every part of the AI supply chain domestically, from wafer fabrication equipment to model building. We have never seen on company attempt to do everything before.”
Huawei reportedly building advanced chip factory for AI and smartphones (Image Credits: Financial Times)
New Chip Facility
Inputs further reveal that the new factory will nurture Huawei’s 7nm SoC production for Kirin and Ascend. The site said to be quite close to foundries like Pengxinwei (PXW) and Shenzhen Pensun (PST) (part of Huawei’s supply chain).
Huawei is working on its chip production facility following the low output of its chipmaking partners last year. The new chip facility development will likely complete in the coming month, but can take a year to begin operations.
SemiAnalysis – a chip consultancy says that the architectural design of the new chip factory seems identical to other Huawei-affiliated foundries. The self-operated facility and look after Kirin, Ascend chips, and the self-driving tech business.
Financial Times says that Huawei didn’t directly comment on this matter. Yet it said:
“It is not factually correct to attribute all [these] Shenzhen semiconductor-related activities to Huawei. Furthermore, SiCarrier, SwaySure, UEA, PXW, and PST are not affiliated with Huawei.”
Huawei’s self-operated facility in April 2021, 2022 and 2025 (Image Credits: Financial Times)
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