Huawei Increasing Chip Investments to Mitigate Impact of US Restrictions, Report Says
Huawei is increasing its investments in local chip companies to stabilize its supply chain amid a host of U.S. export restrictions on the company, the Nikkei Asia newspaper reported Jan. 13. Since being cut off from certain imports from many…
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global semiconductor suppliers, the company has invested in 20 semiconductor-related companies during the past year and a half, the report said, and is building a “small-scale chip production line for research purposes” in Shenzhen, China. Ten of Huawei’s recent investments came after the U.S. amended its foreign direct product rule in May to further restrict Huawei’s ability to source foreign-made products containing a certain amount of U.S.-origin goods (see 2008170029), the report said. Nikkei also said Huawei is receiving government support to find new “targets for investments,” with one being China-based SiEn Integrated Circuits Co., Ltd. The investment would help Huawei with a range of chip services, the report said, including design, production, packaging and testing. Huawei didn’t comment.