China Economic Review
Charting China’s changing economic terrain · Since 1990

Semiconductor development still focus for Huawei

June 15, 2021

Embattled tech giant Huawei is continuing its development of cutting-edge semiconductors, despite facing on going US sanctions that present serious supply-chain issues, reported Nikkei Asia.

Nikkei reports that, according to an announcement by Huawei director and SVP Catherine Chen, there will be no restructuring at HiSilicon, the company’s chip design subsidiary, signaling a decision to continue its chip development work. The organization had more than 7,000 workers on its payroll in 2020, a number difficult to maintain by a subsidiary expected to go years without contributing to earnings. But, Chen said, Huawei is privately held and unaffected by external forces.

In May 2020, the US government barred companies using American-made products or services from doing business with Huawei. As a result, Taiwan Semiconductor Manufacturing Co., the world’s biggest contract semiconductor maker, and other companies have stopped accepting new orders from Huawei.

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