Huawei continues to develop semiconductors

Huawei insists on its quest to develop global semiconductors, despite the severe US sanctions that robbed manufacturers of the contracts they relied on.


Catherine Chen, Huawei's director, and senior vice president said, we have no intention of restructuring the chip design subsidiary HiSilicon.


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.


In May 2020, the US government banned companies that use 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. 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. This 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.


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 being a modern Noah's Ark floating above an avalanche of difficulties.

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