According to the Financial Times and satellite images, China's tech giant Huawei is making significant strides in establishing an advanced chip production line in Shenzhen. This development aims to reduce dependency on foreign chip technology, specifically targeting technologies from Nvidia (NVDA, Financial), ASML, SK Hynix, and TSMC (TSM).
Dylan Patel, founder of SemiAnalysis, highlighted Huawei's unprecedented efforts in building a comprehensive AI supply chain within China. Since 2022, Huawei has embarked on producing high-end chips and is rapidly progressing with three factories in the Guanglan area of Shenzhen. One of these will be directly managed by Huawei to produce 7-nanometer chips for smartphones and Ascend AI processors. The other two factories, completed last year, are operated by startups Si Carrier and Sway Sure, although Huawei retains ownership.
It is reported that these facilities have received financial backing from the Shenzhen government. Despite Huawei's denial of direct connections with the two startups, industry insiders suggest that Huawei played a crucial role by providing management and technical support, as well as assisting in fundraising, thereby encouraging national funds to invest in the chip technology development.
