Home Business Huawei Invests $1.6 Billion in Massive Chip Plant

Huawei Invests $1.6 Billion in Massive Chip Plant



Huawei announced plans to invest $1.6 billion in a massive chip plant in Shanghai. This new R&D facility is key to Huawei’s ambitious strategy to lessen its dependence on foreign chipmakers. The company is working hard to hire top engineers to speed up the process.


One of the main goals of the plant is to create cutting-edge lithography machines essential for manufacturing the next generation of microchips found in smartphones and other tech devices. Huawei is bringing in engineers with expertise from renowned global chip brands like ASML, Applied Materials, Lam Research, TSMC, Intel, and Micron.

At the moment, the compant is working with SMIC to produce its upcoming 5nm Kirin chip, expected to be commercialized later this year. SMIC is also working on its own 3nm chip production capabilities.

As it continues to collaborate with SMIC, the partnership seems likely to remain important for the foreseeable future, at least until Huawei’s new R&D plant reaches full production.

The work culture at the new plant is expected to be intense. Reports suggest it may exceed the already demanding “996” schedule (working from 9 am to 9 pm, six days a week) with “007” shifts—24/7, no breaks.

Will the ambitious plans and fast-paced work culture pay off in the long run?

via Nikkei Asia


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