Huawei is building a semiconductor empire. And in the middle of the crisis, now it is going for its own DRAM factory

If Huawei has a message for the United States that tried to ostracize it with the five-year-old vetothat message is “thank you.” It was the same president of the Chinese company who commented a few days ago that, without the pressure from the westChina and Huawei could not have developed their technology at the speed they have. Because Huawei is developing an empire, and the latest reports suggest that they are going for the missing piece: DRAM memory.

And they are creating a megafactory so as not to depend on anyone in a market that is far from improving.

DRAM factory. It is estimated that SK Hynix, Samsung and Micron have more than 90% of the global DRAM market. With the big three focusing all their production on AI platforms, neither consumers nor companies of consumer products can access components at competitive prices, so they look for alternatives. It is said that Apple would be looking at the Chinese CXMTbut now there are those point that Huawei is creating a DRAM factory with government support.

The company Swaysure, from Shenzhen, one of the technological hearts of the country, would be building with Huawei a factory with the capacity to create 12-inch wafers. The planned production would be 140,000 wafers per month and, in charge of all this, would be a former director of TSMC.

chip empire. China has one goal: that at least 80% of basic technology that their companies use is supplied by national companies, and Huawei plays a fundamental role there. It is no longer about the huge campuses that they have to promote their own business, but also their presence in all the technological sectors of the country and the importance that they are gaining by becoming one of the pivots of semiconductors in China.

With the help of SMIC, they have managed to develop chips with an advanced architecture in record time and, in addition, it is estimated that at least 11 factories throughout the country operate it with the help of allied companies. They create logic chips, have foundry services, and also operate in the DRAM chip segment. With the new company led by Swaysure, they would take another step to achieve greater independence from the big players in the memory and NAND chip sector.

In the end, it is about creating an industrial network that allows us to achieve that 80% goal and, above all, be more independent from foreign technology.

Images from Planet Labs and Financial Times in which you can see the evolution in the construction of a Huawei and SwaySure plant between 2022 and 2025.

parallel reality. To achieve this, Huawei has some of the most impressive technological and R&D campuses on the planet, which has allowed them in a very short time to not only rise from the ashes, but create a parallel reality. In terms of software, HarmonyOS is on more than 1 billion devices, the Huawei Clouyd service is growing outside of China in countries in Asia, Africa and Latin America, and then there are the chips.

They have the Ascend and Kunpeng optimized for both AI and edge computingrecently introduced a supercluster for advanced AI tasks and intend to change the paradigm of the evolution and development of processors with a ‘Tau Law’ under which they will begin to create their new Kirin consumer chips that we can see in devices such as mobile phones and tablets. And that they have the Chinese government support It is a guarantee.

Chinese lever. Returning to Huawei’s RAM, this movement is not designed to compete against the big three in the sector, but rather to not depend on them. That is, Huawei should not want to be Samsung in such a short time, but having the capacity to make its DRAM, it could stop depending on Samsung or SK Hynix, for example.

Furthermore, these types of movements are part of a more long-term strategy, one in which Huawei has gone from being a large company in China to being one of the lungs of the country’s technological developmentdriving the AI ​​platforms of other companies with its hardware and being the heart of some of the data centers in which China is going to invest 300 billion dollars over the next five years. HE esteemIn fact, Huawei will take over 60% of the Chinese AI chip market in 2026.

Now, no matter how much they invest and create new foundries, they still have a hot potato: no one manufactures advanced lithography machines like ASML’s to which Chinese companies have restricted access. They are advancing through alternative techniques and reverse engineeringbut if China wants to be the first technological nation in the short term (an objective that they have marked themselves), at some point they will need those huge, next-generation “printers.”

Image | ASML

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