huawei responds to U.S. ban requires suppliers to put chip capacity in China

Huawei is known to be reshaping its supply chain and removing U.S. technology/product restrictions due to U.S. restrictions, a process that Huawei insiders say is difficult, but by no means impossible. Huawei has made new demands on suppliers to move production capacity to China, the latest news said. Japan’s Nikkei news agency reported that Huawei has asked foreign semiconductor suppliers to complete most of the expansion or transfer of production capacity in China by the end of 2020.

China responds to U.S. ban requires suppliers to put chip capacity in China

Semiconductor production is divided into design, manufacturing, sealing and other procedures, the current design, manufacturing and other work scattered in Europe and the United States, Japan, South Korea, Taiwan and other regions, in a short period of time can not be casually transferred, Huawei now hope to packaging and other chip last process transferred to the domestic, there is PCB manufacturing is also as far as possible in China to complete.

In addition to asking foreign suppliers to increase production capacity in China, Huawei is also actively supporting Chinese suppliers, citing the packaging phase as an example, and reports say Huawei sent more than 100 technicians to China’s largest sealing plant last year to help upgrade itsĀ  technology, though news says progress is not as smooth as Huawei expects.

Huawei has suspended the validation of new suppliers unless they are willing to increase production capacity in China or cooperate with production in China, the report said.

Huawei’s strategy in the supply chain is to become more local, the sources said, and suppliers with capacity in China will receive Huawei’s primary support.