Huawei jumped into chip production to battle U.S. clampdown

Indeed, Huawei is facing several difficulties in its smartphone business. The company is working hard to get back on track and trying to make better processors.

The ban prohibits any commercial relationship, so the only way is that of partnerships with Chinese companies. The company led by Ren Zhengfei has disappeared from the rankings, the processors used on smartphones are often inventories or limited versions such as the Snapdragon 8+ Gen 1 of Mate 50 and 50 Pro without 5G connectivity. And the founder himself recently spoke of hard times awaiting the company.

To speed production of its chips, Huawei is partnering with domestic chipmakers also blacklisted by the U.S., and has even redesigned some of its core chips so they can be produced with older, less advanced technology that is more readily available in China, according to three sources briefed on the matter.

According to the latest report, Huawei is now entering into partnerships with Chinese semiconductor manufacturers and the company would also have made design changes to its chips.

Rather than build its own chip plants from scratch, the sources said, Huawei is sending staff members to help with the financing, procurement and operation of several local chipmakers, with strong government support. The aim, sources added, is to build production lines free from U.S. “interference.”.

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