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Huawei’s Shenzhen facilities reveal new push into advanced chipmaking

  • Huawei is building three advanced chip production factories in Shenzhen to produce 7nm smartphone and AI processors as of 2025.
  • This expansion follows U.S. Sanctions since 2019 that restricted Huawei's access to cutting-edge chips and technology from suppliers like Nvidia and TSMC.
  • Huawei aims to develop a fully domestic AI chip supply chain, including fabrication equipment and software, partnering with firms operating the new factories under government support.
  • Dylan Patel of SemiAnalysis highlighted Huawei’s exceptional initiative to internally manage the entire AI supply chain, noting that no other company has pursued such a comprehensive level of vertical integration before.
  • This move may boost China's semiconductor independence but industry experts remain skeptical that Huawei can soon rival Nvidia’s performance and ecosystem leadership.
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Financial Times broke the news in London, United Kingdom on Sunday, May 4, 2025.
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