Huawei is starting construction of a large semiconductor facility in Shenzhen, which is expected to be a key element in reducing China’s dependence on foreign chip suppliers. According to the Financial Times, the facility will be part of the supply chain for the production of Kirin mobile processors and Ascend AI chips.
The complex is located next to Chinese contract manufacturers Pengxinwei (PXW) and Shenzhen Pensun (PST), which will allow Huawei to create an integrated technology hub and speed up production processes.
Although Huawei will not directly manage the new venture, the Company will invest in the project and deploy its engineering and management teams. The operational management will be carried out by partners SiCarrier and SwaySure.
The development of this project is also due to the overloading of China’s largest contract manufacturer SMIC, which is unable to cope with the high volume of orders for Ascend chips. According to sources, Huawei is receiving” millions ” of orders for these chips, so the company is looking to urgently scale production.
The Shenzhen plant is officially scheduled to start up in 2026. This is an important step for Huawei as part of its development strategy to increase autonomy and resilience in the face of geopolitical pressures and technological constraints.