[News] Huawei Reportedly Builds 7nm AI Chip Line in First Shot at Making Its Own High-End Chips | TrendForce News

As the U.S. tightens export controls on NVIDIA’s H20 chips, Huawei is stepping up with a broader ambition in semiconductors. According to the Financial Times, the company is swiftly building an advanced chip production line in Shenzhen to manufacture 7nm smartphone and Ascend AI processors, implying its first move to produce its own high-end chips.

New Fab Targeting 7nm Chip Wraps up Soon

Recently, a report from the Wall Street Journal suggested that Huawei has contacted several Chinese tech companies to evaluate the technical feasibility of its Ascend 910D, and is expected to receive the first batch of samples as early as late May. Another report from Chinese media outlet mydrivers revealed that Huawei is also working on Ascend 920, which aims to kick off mass production in 2H25.

These market rumors echo the Financial Times report, which reveals that Huawei’s new fab will focus on producing its own 7nm smartphone and Ascend AI chips. While construction is nearing completion, the plant isn’t expected to be fully operational for at least a year, as Huawei plans to rely heavily on still-untested, domestically made equipment, the report notes.

Ambitious to Challenge Global Giants with Full Supply Chain

According to Financial Times, Huawei is driving efforts to build local alternatives to tech from NVIDIA, ASML, SK hynix, and TSMC. However, some industry experts doubt the company’s ability to catch up, given its limited experience in chipmaking.

Notably, the report claims that Huawei is leading the development of three semiconductor facilities in Guanlan, near its headquarters. Alongside its own plant, two nearby sites—run by start-ups SiCarrier and SwaySure—are also seen as closely linked to the tech giant, the report adds.

Financial Times, citing satellite images for the SwaySure and SiCarrier plants during the past three years, indicates that these distinctively designed factories have quickly taken shape since construction began in 2022.

SiCarrier, spun out of a Huawei lab and rumored to be backed by a Shenzhen state fund, kept a low profile for several years. However, the company made a splash in March by debuting around 30 chipmaking tools—including etching, testing, and deposition gear—at the Semicon conference in Shanghai, as highlighted by Financial Times.

South China Morning Post notes that SiCarrier grabbed headlines in 2023 with a patent for making 5nm chips using DUV tools—a breakthrough linked to Huawei’s 7nm chip in the Mate 60 Pro.

Meanwhile, the second site is reportedly run by SwaySure, a memory chip supplier for Huawei’s cars and consumer tech.

Citing information from Department of Commerce, BIS, the Financial Times report outlines a comprehensive semiconductor ecosystem under Huawei. The report notes that while HiSilicon is known for chip design, Huawei also controls the entire fabrication chain. Beyond SwaySure, it has Fujian Jinhua for memory chips, Si’En and Pengjin for power chips, and PXW and PSR for legacy logic chips, the report says.

Read more

• [News] Huawei Reportedly Set to Test New Ascend 910D AI Chip as Early as May, Aiming to Challenge NVIDIA
• [News] Huawei’s Ascend 920 Reportedly Set for 2H25 : Concerns Grow Over SMIC’s Capability and HBM Access

(Photo credit: Huawei)