Huawei prepared plans to support a semiconductor manufacturing facility in Shanghai which is run by a partner and omits technology owned by US companies, as the vendor continues to move to mitigate the impact of sanctions on its supply chain.
Financial Times reported comments from two sources revealing an outline of the project, which will see a facility opened and run by Shanghai IC R&D Center, a state-backed organisation focused on supporting the interests of Chinese businesses.
The industrial site will focus on creating chips used by Huawei’s infrastructure division alongside technology used in IoT devices and smart TVs. It will apparently not provide supplies for smartphones, given the specific requirements for these.
It will initially operate as a research facility before moving to production.
Huawei has been mulling its supply chain options across its various divisions following escalating US sanctions, which prevent businesses selling specific hardware, software and technology to the vendor and others on its trade blacklist.
In recent weeks, several rumours have surfaced claiming US authorities had issued licences to a number of companies for the supply of specific equipment to Huawei, though most reports state limits exist on the types of kit which can be sold to the vendor.Subscribe to our daily newsletter Back