Huawei joins forces with local government-funded companies to restructure China's semiconductor supply chain (Reuters)

[Financial Channel/Comprehensive Report] Because of the series of chip sanctions imposed on China by the United States, Huawei has begun to rebuild China's semiconductor supply chain. Foreign media investigations have found that Huawei has combined many local government-funded companies to provide technical support, hoping to create Independently manufacture the supply chain and achieve stable procurement in China.

Nikkei reported that when the reporter went to the factory of Fujian Jinhua Integrated Circuit Co., Ltd. (JHICC), a relevant person who provided equipment to the factory pointed out that the company was sanctioned by the United States a few years ago for stealing Micron's business secrets. Factories that were nearly shut down have quietly resumed production.

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According to several relevant sources, recently a mysterious big customer appeared, that is, Huawei, which was sanctioned by the US, and provided support for Jinhua's restart of production in terms of technology and procurement.

Jinhua has recently expressed to its suppliers its intention to double its production capacity by 2024.

In addition to the resumption of work and production in Jinhua, Quliang Electronics Co., Ltd., which is engaged in semiconductor packaging and other businesses, is promoting the construction of the second phase of the factory opposite the Jinhua factory; the relevant person in charge of recruitment in the factory said that most of the products are for Huawei. .

The background reason why Huawei strongly supports semiconductor companies is that in addition to being difficult to purchase semiconductors from abroad due to the US system, it is also difficult for Huawei to entrust the production of semiconductors designed by itself to companies in Taiwan and other places. Therefore, Huawei has turned its attention to restructuring supply domestically. chain.

It is said that, including cooperative semiconductor companies, Huawei's investment in recent years plus local government support is expected to reach 400 billion yuan.

In fact, in addition to Fujian, we also vaguely see the support provided by Huawei in Beijing, Shandong, Hubei, and Guangdong.

In Shenzhen, near Huawei's headquarters, the semiconductor company "Shenzhen Pengxin Microchip Manufacturing Co., Ltd.", which was established in 2021, is building a new factory.

Relevant sources pointed out that this enterprise will become an important production base for Huawei.

In Shenzhen, in addition to Pengxinwei, Shenzhen Pengxinxu Technology and Shenzhen Shengweixu Technology also plan to build semiconductor factories.

All enterprises are fully funded by investment companies under the Shenzhen Municipal Government.

Relevant personnel said that Huawei may become a major customer.

Huawei declined to comment on the above reports, while Jinhua Semiconductor, Quliang, Pengxinwei, Pengxinxu and Shengweixu did not respond to interviews.

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