Huawei is building a chip factory in China to counter US sanctions

The past two years have been tough for the Chinese smartphone giant Huawei. The company lost a large portion of its business after the United States banned it due to security concerns. Since then, Huawei has not been able to do business with any US company, including Google and Qualcomm.. A new report now claims Huawei is building a chip production factory in China to counter US sanctions that the Chinese smartphone maker will make its own chip at its factory in China.

Huawei is trying to combat US sanctions by making all its requirements to build devices without the need for other companies

The Digitimes report claims that the Shenzhen-based tech company will build its first foundry in Wuhan. The report states that the company plans to start production in phases starting next year.
Digitimes reports that Huawei will build its first chip-making plant in Wuhan, Hubei Province. According to the report, the company is expected to start production in phases starting next year.

Sources reveal that this plant will initially be used to produce Kirin optical communication chips and units to achieve self-sufficiency and maintain a good amount of required chips.

Digitimes also claims that this plant will be used to produce chips and optical communications units to gain self-sufficiency and create microcircuit designs.

Huawei has yet to make any official announcement or confirmation regarding the HiSilicon factory in Wuhan. Although Huawei is famous for its dominance of communications equipment, the company’s research institute based in Wuhan currently has nearly 100,000 R&D employees who mainly research and develop optical communications equipment, HiSilicon chips, and even automotive laser radars.

In related news, the Chinese smartphone giant is preparing to launch its flagship smartphone series, the P50 series, in China. There is no launch date yet.