Trends

Huawei Builds $1.4B Shanghai centre as chip war heats up

OUR TAKEHuawei Technologies is about to complete its largest research and development centre in Shanghai, a major step forward for the global semiconductor industry. The centre, which will be Huawei’s largest, covers 1.6 million square metres and has extensive facilities, including its own roads and…

Huawei 7-16

Headline

OUR TAKEHuawei Technologies is about to complete its largest research and development centre in Shanghai, a major step forward for the global semiconductor industry. The centre, which will be Huawei’s largest, covers 1.6 million square metres and has extensive facilities,…

Context

OUR TAKE Huawei Technologies is about to complete its largest research and development centre in Shanghai, a major step forward for the global semiconductor industry. The centre, which will be Huawei’s largest, covers 1.6 million square metres and has extensive facilities, including its own roads and railway system. It’s designed to house around 30,000 employees and represents a $1.4 billion investment focused on developing semiconductors for various technologies. Despite facing tough US sanctions, including a ban on the purchase of certain key chips, Huawei has continued to make notable progress, such as the launch of a 5G smartphone using a Chinese-made chip. This shows the company’s resilience and ability to innovate under pressure. — Heidi Luo , BTW reporter Huawei Technologies is nearing completion of a major chip research and development centre in Shanghai. The facility, which will be Huawei’s largest research centre in the world, will house around 30,000 employees. Located in the Qingpu district, the site covers 1.6 million square metres and has its own road network, a small railway system and elevated bridges.

Evidence

Pending intelligence enrichment.

Analysis

The centre aims to drive breakthroughs in semiconductors for devices, wireless networks and the Internet of Things. According to a statement on the Shanghai government’s website, the total investment cost of the project is $1.4 billion. Despite ongoing US sanctions aimed at curbing Huawei’s technological advances, the company has continued to make progress, most notably last year with the launch of a 5G phone powered by a Chinese-made 7-nanometre chip. The Biden administration has responded with additional restrictions, including revoking licences that allowed Huawei to buy certain chips from Qualcomm and Intel. Also read: Vanuatu PM looks to China’s Huawei for surveillance tech Also read: China increases chip production as Europe hits shortage crisis

Key Points

  • Huawei Technologies is nearing completion of its major chip research and development centre in Shanghai, which will be the company’s largest.
  • US regulators have imposed significant restrictions on Huawei, including revoking licences to buy chips from key suppliers.

Actions

Pending intelligence enrichment.

Author

Heidi Luo (h.luo@btw.media)· author profile pending