Huawei Plans to Develop Its Own Chips to Dodge US Sanctions

Huawei has decided to take the matters into its own hands.
Deniz Yildiran

"Enough is enough!" Huawei seems to be fed up, having the last word. Huwaei has been dealing with US sanctions for a long time, which prevents the globally racing company from obtaining chips developed with U.S. technologies, per the U.S. Commerce Department.

“As we have restricted its access to U.S. technology, Huawei and its affiliates have worked through third parties to harness U.S. technology in a manner that undermines U.S. national security and foreign policy interests. This multi-pronged action demonstrates our continuing commitment to impede Huawei’s ability to do so," Commerce Secretary Wilbur Ross stated on August 17.

Huawei's new plan, according to Financial Times, is to build its own chip plant in Shanghai, China without having to rely on the US equipment anymore. 


There is one thing that might have dissuaded the company from moving on though. That is, Huawei is no expert in building and managing chip plants. Still, it managed to have found the solution in a collaboration. The plant will be run by one of its partners and a government-backed company called Shanghai IC R&D Center. 

The plant will be fabricating low-end 45nm chips in the first place and will manufacture more advanced 28nm chips by late 2021. 20nm chips for 5G technology will be available by the end of 2022, per Financial Times.

This on-again-off-again tech war relationship between the two countries' does not seem to end soon, as we could tell by all the hustle and bustle going on. 

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Back in July this year, we reported that Huawei's 5G kits will be banned by the UK, starting from December 31, 2020. What's more, mobile providers will have removed all the Huawei 5G kits by 2027. The UK's decision no doubt received its huge impact from the constantly issued US sanctions over the company. 

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