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Huawei Backs Local Chip Gear to Bypass Foreign Controls
8 Sep
Summary
- Huawei supports Chinese firms developing chipmaking lithography machines.
- Efforts aim to create domestic alternatives to ASML's advanced equipment.
- Success could reduce China's vulnerability to Western export restrictions.
Huawei is actively involved in advancing China's semiconductor self-sufficiency by backing domestic manufacturers of advanced chipmaking equipment. The company is investing in firms that produce lithography machines, crucial for creating sophisticated chips, with the objective of establishing local alternatives to dominant foreign suppliers.
One significant development involves Yuliangsheng, a Shanghai-based manufacturer that has co-developed China's first advanced deep ultraviolet (DUV) lithography machine. This machine is currently undergoing testing by Chinese chipmakers, including SMIC and on Huawei's own production lines, as engineers work to refine its capabilities for producing advanced AI chips.
Lithography remains a major hurdle for China's semiconductor ambitions, as local companies heavily depend on ASML for essential equipment. Huawei's strategy involves supporting local suppliers and facilitating the integration of their technology into commercial fabs to close gaps in critical components like projection lenses and light sources.
Several Huawei-backed funds, such as Habo and Shenzhen Yuanzhi Xinghuo, have invested in companies developing these essential components. For instance, they've supported Fujian Zhiqi Photonics, an optics manufacturer, and Beijing RSLaser Opto-Electronics, a developer of light sources. These investments aim to address bottlenecks and reduce reliance on foreign parts, potentially accelerating China's progress despite Western export controls.
