To gain conditional independence in the production of semiconductor components.
It is known that the Chinese company Huawei Technologies has been hit hard by US sanctions, which began to be introduced back in 2019 under former US President Donald Trump, but a recent quarterly report from Huawei showed that the adaptation of the Chinese giant to the new business conditions in large part ended, and revenue stopped falling precisely for geopolitical reasons. According to DigiTimes, Huawei is still hopeful of building its own semiconductor manufacturing ecosystem as access to overseas contractors like TSMC has been cut off due to sanctions.
Image Source: AFP
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According to the source, Huawei Technologies will try to join forces with other Chinese companies affected by US sanctions. Apparently, an alliance between Huawei and SMIC, which remains the largest contract chip manufacturer in China, may emerge. In addition, it recently became known that Huawei, in an atmosphere of heightened secrecy, is buying up enterprises of bankrupt chip manufacturers in China in order to start producing components for its own needs on their basis. The Chinese giant has even filed a patent for a EUV scanner design for sub-7nm process technology, so import substitution work in the Chinese semiconductor industry can be done in several directions at once.
