Huawei has initiated a sweeping campaign to build an entirely domestic supply chain for Artificial Intelligence semiconductors in response to escalating foreign technology restrictions, according to recent reports and satellite imagery analyzed by the Financial Times. Centered in Guanlan, China, the company is constructing a state-of-the-art facility capable of producing custom processors on 7 nm process technology, marking a significant pivot from its reliance on external manufacturers such as SMIC, whose limited production capacity has posed constraints. As stated by Dylan Patel of SemiAnalysis, Huawei´s vertically integrated approach encompasses the entire semiconductor lifecycle, from acquiring raw materials and chemicals to wafer fabrication, equipment manufacturing, and chip design.
Uniquely, the strategy sees collaboration even from rival firms. SMIC and SMEE, both prominent in China´s silicon manufacturing landscape, have reportedly provided engineering expertise to facilitate Huawei´s in-house semiconductor production. The operation has grown into a network of specialist companies, all backed by Huawei with funding and research resources. Among these, SiCarrier supplies critical equipment including optical and X-ray inspection tools, atomic force microscopes, metrology alignment systems, etchers, rapid thermal processors, and platforms for electrical testing. This robust ecosystem ensures reliability and quality at every manufacturing stage, enhancing Huawei´s autonomy in technology development.
The domestic supply network extends further with contributions from various partners. SwaySure and Fujian Jinhua are responsible for memory chips, while Si´En and Pehgjin provide power management chips vital for Artificial Intelligence computing tasks. For logic operations, companies such as PWX and PST contribute their expertise. This expansive initiative is recognized as unprecedented, with industry analysts noting that no other company has attempted to master every segment of the Artificial Intelligence supply chain in-house, from hardware to model building. As global technological tensions persist, Huawei´s move signals a strategic response aimed at long-term resilience and innovation leadership in China´s semiconductor sector.
