Huawei’s Affiliates Expand Independent Chip Supply Chains

Chinese tech giant Huawei and its affiliated semiconductor firms are aggressively expanding their domestic supply chains through acquisitions and capacity upgrades. This strategy aims to build a self-reliant ecosystem for semiconductors in line with China’s national ambitions.

The China Hi-Tech Fair, held recently in Shenzhen, highlighted Huawei’s advancements in artificial intelligence (AI) technology. At the event, Huawei showcased its CloudMatrix 384 servers equipped with in-house developed Ascend chips designed to challenge US rivals like Nvidia. Eric Xu Zhijun, Deputy Chairman and Rotating Chairman of Huawei, emphasized the global leadership of these chips.

Huawei has strategically invested in over sixty semiconductor companies through its subsidiary Hubble since 2019 when US sanctions were imposed on the company. These investments aim to foster close collaboration between the affiliated firms and Huawei for technology development and manufacturing.

Jiangsu HHCK Advanced Materials, a leading chip packaging material producer, recently announced the acquisition of another Chinese firm for RMB 1.6 billion. This move is expected to enhance HHCK’s production capabilities both domestically and internationally, further supporting China’s goal of reducing reliance on foreign technologies.