Huawei is Allegedly Developing a “Mega Chip Facility” in China to Reduce Foreign Chip Dependence

Alright, let’s dive into Huawei’s new mega facility for chips. It’s supposedly brewing up in China and all eyes are on those Kirin and Ascend chips everyone seems to obsess over. Can’t blame them—I mean, seriously, these chips are in demand like the last donut at an office party.

So, here’s the scoop. Huawei’s been this tech juggernaut, evolving like some tech Pokémon. Started with mobiles, now it’s all about challenging NVIDIA in the wild world of AI. Remember when they were just a phone company? Now, they’re pushing the envelope with these Ascend AI chips. But—get this—they’re having a hard time keeping up with demand. I guess a good problem to have? Who even knows anymore.

Anyway, rumor has it from the Financial Times (sounds fancy, right?) that they’re plotting a ginormous chip facility in Shenzhen. Like, picture this sprawling tech oasis. It’s all about integrating that AI supply chain, getting everything under one roof. Or, you know, one really big roof.

Word on the street is that this new spot is gonna crank out those 7nm chips, the ones that power the Kirins and Ascend AI processors. And, listen, they’re not doing this alone. They’re snuggling up to some other foundries like Pengxinwei and Shenzhen Pensun. Basically, it’s like they’re forming this supergroup of chip makers.

Oh, weird tidbit—apparently, the local government is throwing some cash into the project. Huawei’s not the one running the show directly. Instead, companies like SiCarrier and SwaySure are taking the wheel. It’s like Huawei’s setting up this secret lab but letting other folks do the heavy lifting. Smart? Maybe. Intriguing? Definitely.

Now, if you’re wondering why they’re doing all this, it comes down to SMIC. Yeah, SMIC kind of dropped the ball on meeting chip demands, apparently. Millions of orders for these Ascend chips—imagine piles of them—and yet not enough supply. So Huawei’s basically saying, “Fine, we’ll do it ourselves,” in the most ambitious way possible.

And who knows, maybe next year this facility kicks into high gear, churning out chips like there’s no tomorrow. Just the first step, they say, towards Huawei becoming the king of advanced chip tech. Whatever happens, it’s bound to be a wild ride.