Catenaa, Monday, May 12, 2025- Huawei is reportedly constructing a massive chip production facility in Shenzhen, aimed at fulfilling the growing demand for its Kirin and Ascend AI chips.
The new facility, which is expected to focus on 7nm and above production, will play a central role in enhancing the company’s capabilities in artificial intelligence (AI) processing and mobile chip production.
The facility is part of Huawei’s strategy to vertically integrate its AI supply chain. It is said to be in close proximity to other Chinese foundries, such as Pengxinwei (PXW) and (PST), which are key parts of Huawei’s supply chain.
This geographic concentration will help streamline sourcing, allowing Huawei and its partners to work more efficiently.
Although Huawei will provide the funding and oversee the project, firms like SiCarrier and SwaySure will handle the day-to-day operations.
The facility is being partially funded by the local government, with Huawei playing a crucial role in managing the technical and operational aspects of the plant.
This move follows Huawei’s rapid progress in the AI space, particularly with its Ascend AI chips. The company has faced challenges in meeting high demand due to constrained production lines, and the new facility is expected to address these issues.
The facility is expected to be operational by 2026, positioning Huawei as a strong player in the advanced semiconductor industry.
