Backe in 2019 when the American Government blacklisted Huawei by declaring it as a national security threat. The US government cut off all the access of Huawei to the American semiconductor and other crucial technologies. Even Huawei was banned from using Android on its devices, an operating system developed by Google. Now Huawei is seeking new routes to be self-sufficient. In the first step, It developed its own operating system, and now it’s investing in a huge startup, destined to develop Chip and other cutting-edge technologies.
The Chinese tech giant is providing all the financial support to the newly established startup in the city of Shenzhen, one of China’s industrial hubs. In the first step huge piece of land has been acquired by the startup named PXW, the land is equivalent to the size of thirty football stadium. The satellite imagery shows that the construction work is taking place at a very fast pace at the site.
The firm has ordered chip manufacturing equipment from unknown suppliers. The firm top management worked for Huawei prior to this startup, so the intentions are clear. And the location of the site is very close to Huawei's headquarters according to the data revealed.
Huawei's intentions are clear, it will be the main buyer of the technologies produced by the startup.
If the startup succeeds in gaining access to the chip manufacturing equipments, this will decrease China’s reliance on US and other chip exporters. So will be a winning moment for the Huwei, which came across major setback when the U.S declared teh firm a security threat and banned it from accessing the American consumers market. Befor the sanctions the Tech joint was competing very closely with Apple and South Korea’s Sam sung.
The newly established firm, known as PXW has already raised the eyebrows of US Commerce Department’s Bureas of industry and security, for its close relationship with Huwei. The department is continuously in effort to halt the equipment supply to the startup.
It’s not clear yet that PXW is being built to help Huwei, if so then it will be a major violation of US sanctions. And it would severly banned from obtaining any equipment and technical support required to build the cutting edge technology. Although it has the option of buying assembly gears form ASML and Japan’s Tokyo Electron Ltd. If that happens the will also require permission form the the US to export such technologies.
The startup recently announced that it has reache an agreement with foreign conglomerate for the chip manufacturing plant equipments, though it did not name the supplier. In the same statement teh company announced to start production of semiconductors based technology in 2025.Initially the company will manufacturing a bit larger chip, 28nm technology, which is lags behinds six generations from the most advanced chip manufacturer in the world.
Huwei casused one of the most controversial issues of 2019. The trump administration blacklisted the company and asked its allies such UK and Japan to uninstall all the equipment made by Huwei from its public offices, hinting towards the fear of espionage. The conflict arose becasue of the posecution of the CFO of Huwei in alleged fraud charges. The CFO persistently denied the frauds allegations. To point out here she is the daughter of Huwei’s founder.
If PXW succeeds in building China’s own chip manufacturing, it will still be far behind than Taiwan in the field. But it’ll play a vital role in the development of Huwei and to recapture teh lost ora of the Tech giant.
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