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Huawei continues to develop semiconductors

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Huawei is insisting on developing global semiconductors, despite tough US sanctions that rob manufacturers of the contracts they relied on.

“We have no intention of restructuring the chip design subsidiary HiSilicon,” said Catherine Chen, Huawei’s director and senior vice president.

HiSilicon had more than 7,000 workers on its payroll in 2020, a number that would be difficult to maintain for a subsidiary expected to last for years without contributing to profits.

Chen said Huawei is privately owned and not influenced by outside forces. Its management has made it clear that it intends to retain HiSilicon.

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In May 2020, the US government banned companies using US-made products or services from doing business with Huawei.

As a result, Taiwan Semiconductor Manufacturer TSMC, the world’s largest semiconductor maker, and other companies have stopped accepting new orders from Huawei.

HiSilicon Semiconductor, founded in 2004, develops chips for Huawei smartphones and other devices. It is considered one of the most advanced chip developers in the world.

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Huawei continues to develop semiconductors:

HiSilicon reported sales of $385 million in the first quarter of 2021. The figure is an 87 percent decrease from the April-June period of 2020, when HiSilicon sales peaked.

TSMC was HiSilicon’s primary outsourcing contractor. Which means that sales of HiSilicon are likely to drop to zero sooner or later.

But Chen made it clear that Huawei has no plans to reduce HiSilicon’s workforce. HiSilicon continues to develop and manage semiconductors despite the sanctions, which are expected to last for two to three years.

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Other countries are boosting their semiconductor industries. This helps HiSilicon acquire new partners in the supply chain that are not dependent on US technology. This is expected to happen within a few years.

HiSilicon is also seeking to pursue other lines of business. In May, it announced its participation in a project to achieve widespread use of 8K Ultra HD TVs.

With expectations that the United States and China will continue the battle for supremacy in the field of high-tech. Huawei has advanced in the development of special technologies in a research center that the company considers a modern Noah’s Ark floating above a flood of difficulties.

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