Huawei is Reportedly Developing a “Mega Chip Facility” in China to Reduce Dependence on Foreign Chipmakers

Huawei’s up to something big again—I mean, they’re always up to something, but this time it’s a “mega-facility” for cranking out chips in China. Yeah, those Kirin and Ascend chips everyone seems to want.

So, imagine this: Huawei used to be that mobile phone company, right? Now they’re trying to give NVIDIA a run for its money in AI chips. Seriously, they’ve been all over the map the last few years. Anyway, the Financial Times says they’re cooking up a massive chip factory in Shenzhen. Oh, and it’s all about going “vertical” with their AI supply chain. Whatever that means.

This new setup is supposed to handle the 7nm chips—fancy techy stuff—for those Kirin phones and Ascend AI gadgets. Apparently, it’s gonna be neighbors with other foundries like Pengxinwei (PXW) and Shenzhen Pensun (PST). Is this some kind of foundry party? Maybe. But the idea is everyone gets cozy, and things speed up supply-wise. Sounds intense.

Now, here’s where it gets political or something—local government money is involved. But the plot twist? Huawei’s not planning to run the place directly. Instead, SiCarrier and SwaySure are the heroes of this story. Huawei throws in cash, sends in their people, and somehow controls the show without being center stage. They’re like the puppet masters.

They’ve got big plans, I guess, especially after SMIC kinda dropped the ball with meeting the industry’s chip needs. “Millions” of Ascend chips are wanted, or so they say, and SMIC just can’t keep up. Shenzhen’s facility might be Huawei’s ticket to keeping up. Could be up and running next year, if all goes as planned, which seems like a miracle in tech.

So, there it is. Huawei’s diving deep into the semiconductor world, and it’s kinda wild. But who knows, maybe next year they’ll surprise us with something else.