Huawei might have a way to avoid some of the worst consequences of tightening US trade restrictions, provided it’s willing to be patient. Financial Times sources claim Huawei is planning a dedicated chip factory in Shanghai that would make parts for its core telecom infrastructure business. It would be run by a partner, the city-backed Shanghai IC R&D Center, and would be considered experimental until it’s ready to make chips Huawei can use.
The plant would start by making chips based on a very old 45-nanometer process before moving to 28nm chips by late 2021. That would be advanced enough to make chips for smart TVs and Internet of Things devices, the tipsters said. It would reach 20nm by late 2022, when it could make “most” of its 5G cellular hardware.