Shanghai Research Centre enables Huawei to strengthen semiconductor development
Growing demand for semiconductor products is encouraging market players to expand production. The sanctions imposed on China have made the country’s need for chips even more urgent. Huawei Corporation is building a semiconductor production centre in Shanghai to meet this demand. The project is already nearing completion.
The overview of the Centre
According to the official statement, the investment for the new centre is US$1.4 billion. The project is a campus that will house research. It is worth noting that the deterioration of trade relations between the US and China led to severe sanctions, which mainly affected semiconductor products. As a result, the PRC faced a shortage of imported microchips, forcing companies to increase production of semiconductors. Among the latter was Huawei Corporation. The company notes that the new park in Shanghai will be the company’s largest research centre. It will house around 30,000 specialists and occupy 1.6 million square metres. Construction of the centre was already underway in 2020, but there have been delays to the project due to global and domestic issues.
The facility will be in the Qingpu district of the city and is part of Huawei’s headquarters:
– its railway network;
– elevated bridges;
– 104 laboratories;
– office space;
– restrooms;
– cafes and catering facilities.
The park will develop chip manufacturing technologies and promote innovation in other areas, including solutions for the Internet of Things sector and wireless networks.
Huawei’s development strategy
One of Huawei’s goals is to attract foreign specialists. However, none will be US citizens, as the company does not have a licence from the US government. Huawei currently employs around 800 foreign workers.
Despite the personal sanctions, it is notable that Huawei continues to actively developing its business. In 2023, the company released a new smartphone with 5G support based on a 7nm chip. The chip was manufactured in China, a sign of technological progress.
The US government has increased restrictions on Huawei to curb its potential. The White House has also called on other countries to impose strict controls on semiconductor exports to China. As a result, Qualcomm and Intel can no longer sell chips to customers in the PRC. Previously, they had exploited some loopholes in US law that allowed them to supply products legally.
Huawei is actively investing in new developments to further its development. In 2023, it invested about 23% of its revenue in research, and around 55% of its total workforce is employed in this area.
