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Huawei invests in China chip groups as US curbs strangle supplies

Huawei has started investing in emerging Chinese chip companies as the telecoms group accelerates efforts to become self-reliant in semiconductor technologies in the face of US sanctions, reported the Financial Times.

Hubble Technology Investment, a RMB 2.7 billion ($413 million) fund set up by Huawei in April last year, has acquired minority stakes in three Chinese semiconductor equipment companies over the past three months.

That marks a significant shift in strategy that observers believe is linked to Huawei’s plans for “de-Americanised” chip production, as the Shenzhen-based group struggles in the face of US restrictions.

Hubble was previously “investing mainly in companies that can be direct suppliers to Huawei, but a couple of recent investments are different”, said Mark Li, a chip analyst at Bernstein in Hong Kong. “They are semiconductor equipment vendors that are not going to be direct suppliers to Huawei.”

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