[Update] Huawei Petal search engine launched in China

Since 2019, Huawei has faced a shortage of chipsets and other essential components. However, a recent report from the WSJ suggests that Huawei is investing heavily in other chipmakers to gain traction in the industry and solve its current problems.

In the past six months, nearly half of investments in chipmakers are aimed at getting Huawei access to the required semiconductors from a variety of sources. The investment part is carried out by Huawei Hubble, an investment arm of the Chinese technology maker.

Data shows that Huawei Hubble has invested and is deeply involved in the semiconductor supply chain. Most of these investments are made in energy companies in the manufacture and design of chipsets as well as in companies capable of producing the chipsets and associated materials. There is also a first which could provide equipment for manufacturing chipsets.

However, Huawei did not disclose the funds allocated and invested in these companies. However, an estimate of these investments could run into tens of millions of US dollars in some companies.

Some industry analysts believe Huawei is making efforts to improve China’s chip supply chain industry. Not only Huawei, but other tech makers like Xiaomi, Oppo, and Lenovo have made such investments in the past as well. There is therefore nothing new in this matter.

The report suggests that Huawei wants to resolve its current chip crises by increasing investment in the chip industry and making the most of those conditions which could be created with the support of HiSilicon, a chip design subsidiary of Huawei.

Currently, the United States and Japan are leading the way in semiconductor manufacturing and leading the way. While the fund is not all that China needs to partner with the global supply chain industry, it is still a dedicated amount that will spark the interest of other investors in the semiconductor industry to increase production and efficiency in the country.

Investment:

The report also suggests some of Hubble’s investments last year. In early December, Jingtuo Semiconductor Technology Co, a Suzhou-based manufacturer of specialty equipment used to keep chip components clean during production. According to Jingtuo’s website, the company is “helping to locate semiconductor equipment in China.”

In August, Hubble acquired an almost $ 46 million stake in Xuzhou B&C Chemical Co., a company that describes itself as China’s largest photosensitive resin, a leading semiconductor material. In June, Hubble acquired RSLser Opto-Electronics Technology Co. Ltd. of Beijing, a manufacturer of high-power lasers used in chip manufacturing.

However, the investment has not been officially confirmed by Huawei.

To forbid:

Huawei has the ability to design chipsets, but it cannot print them with chipset makers like TSMC due to the extended US sanctions in 2020.

Meanwhile, Huawei continues to search for new solutions that could advance the semiconductor industry. On the other hand, the Chinese tech maker hasn’t fired any chip engineers even though they can’t print them.

“They are continuing their work,” Huawei public affairs chief Catherine Chen said in June. “We are convinced that the difficulties can be overcome in two to three years. ”

(Source – WSJ)

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