Reports of the Huawei chip plant hit the headlines over the weekend, and we’re now delving into this information. From the original reports on this matter, we learnt that Huawei is investing a whopping $1.66 billion in R&D to boost its chip manufacturing plant. This plant will sit in Shanghai and will be home to the research and development of various chips that Huawei will put to use on its devices.
This plant is a crucial part of Huawei’s plans to dominate the technology market in its region and beyond. The reports also point out that Huawei is already working with some top minds in the chip manufacturing industry. By sourcing talent and brains from ASML, Applied Materials, Lam Research, TSMC, Intel, and Micron, Huawei is more than ready to take on the competition.
To make this investment workable, Huawei will demand tight working schedules from its staff for the first duration of production. This will help the tech giant meet its target for chip production and make it relevant for other tech firms as well. With so much investment going into this Huawei chip plant from the Chinese tech giant, you might wonder why this is important.
Over the past years, Huawei has sourced its chips from other top manufacturers in the industry. However, after being hit by a truckload of sanctions from the US government, Huawei has been facing a hard time sourcing chips. So, instead of laying back and hoping that the US removes the sanctions, Huawei is taking things into its own hands and building its very own chip manufacturing plant.
This plant will be the birth home for future Kirin chips that’ll power Huawei devices. Huawei might not be the only firm that benefits from its chip plant, as manufacturing might also serve a ton of local manufacturing firms. With this investment, Huawei is walking closer to its freedom from dependency on foreign manufacturers for various chips.