ZTE corrects chipset production claims - Mobile World Live

ZTE corrects chipset production claims

22 JUN 2020

ZTE issued a statement explaining it doesn’t manufacture its own chipsets after some Chinese media reported it had the capability to mass-produce advanced 7nm components, sending its share price higher late last week.

“The company must clarify that it is not capable of producing or manufacturing chipsets,” ZTE stated, noting it relies on global industry partners for supplies.

It said some social media outlets “misinterpreted” its capacity for large-scale production of 7nm chipsets. It explained it had more than 20 year’s experience designing chipsets, with “full-process customised design capabilities”.

Mass-production of a 7nm design began earlier this year, and it is working with partners on a 5nm design scheduled to be manufactured in 2021.

ZTE’s clarification comes after the US last month imposed new export restrictions on Huawei’s access to critical components, which effectively bans it from using chips produced by Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract manufacturer of chips.

Both vendors rely on companies such as TSMC to manufacturer the chips they design.

Faced with new US sanctions, the Chinese government is pushing domestic companies to develop chips to reduce reliance on imported components.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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