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Huawei unit signs chip supply chain deal with domestic partner

Huawei’s chip design arm has struck a deal aimed at building up its domestic supply chain, a local partner said on Tuesday, in a first public move against a US clampdown aimed at cutting its access to vital technology, reported Nikkei Asia.

Shenzhen JT Automation Equipment, a Chinese chip production tool maker, on Tuesday said in a stock exchange filing that it has signed a five-year legally binding memorandum of understanding with Huawei’s HiSilicon Technologies unit, China’s biggest chip developer.

“Huawei’s HiSilicon is stepping up efforts to push to build a domestic chip packaging and testing supply chain,” JT said in the filing on Tuesday.

“Both parties aim to expand collaboration on semiconductor packaging tool development in a bid to solve the ‘neck-choking’ problem and realize a self-sufficient and controllable industry,” the filing said.

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