Huawei continues to develop semiconductors
Huawei continues to develop semiconductors

Despite the United States imposing harsh sanctions on the contract manufacturers they depend on, Huawei continues to insist on global semiconductor development.

“We have no plans to restructure our subsidiary HiSilicon chip design company,” said Kathleen Chen, Director and Senior Vice President of Huawei.

HiSilicon has more than 7,000 employees on its 2020 payroll, which is hard to maintain for a subsidiary that is expected to not convert for many years.

Chen said Huawei is privately owned and not influenced by outside forces. Management has indicated that it intends to retain HiSilicon.

In May 2020, the US government banned companies using US-made products or services from doing business with Huawei.

As a result, Taiwan Semiconductor Manufacturer TSMC, the world's largest semiconductor maker, and other companies have stopped accepting new orders from Huawei.

HiSilicon was founded in 2004 to develop chips for smartphones and other Huawei devices. It is considered one of the most advanced chip developers in the world.

Huawei continues to develop semiconductors:

HiSilicon reports revenue of $385 million in the first quarter of 2021. This is 87% lower than when HiSilicon sales peaked between April and June 2020.

TSMC is the principal sub-contractor of HiSilicon. This means that sooner or later sales of HiSilicon will drop to zero.

However, Chen clarified that Huawei has no plans to lay off HiSilicon employees. Despite the sanctions, HiSilicon continues to develop and manage semiconductors, and the sanctions are expected to last for two to three years.

Other countries are promoting the semiconductor industry. This helps HiSilicon attract new partners in the supply chain that are not dependent on US technology. It's supposed to happen in two years.

HiSilicon also wishes to develop other professions. In May this year, he announced his participation in a project to popularize the use of 8K Ultra HD TVs.

The United States and China are expected to continue to compete for supremacy in the high-tech field. Huawei has developed special technologies at a research facility that, according to the company, is a modern Noah's Ark perched on an avalanche.

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