Between this and a stockpile of chips, Huawei could theoretically keep its telecom hardware business running with relatively little disruption. While its chips from 2021 onward might lag behind international rivals, they could be good enough for the domestic market until Huawei can further improve its designs.
Huawei and the IC R&D Center both declined to comment to FT, with the research firm calling the matter “rather sensitive.”
Huawei might not have to worry about its long-term future if reports are accurate. As you may have noticed, though, there’s no mention of phones in this plan. Mobile devices need highly advanced chip processes to remain competitive at the high end (the Kirin 9000 in the Mate 40 Pro is a 5nm chip), and the reported Shanghai plans wouldn’t help. Huawei can turn to fabrication allies like SMIC for more modest phone chips, but it’s still likely to scale back its phone offerings once their existing supplies dry up.
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