Huawei increases chip investment in China

Huawei increases chip investment in China

Huawei Technologies, which lost the ability to buy most of the chips for electronics manufacturing due to US sanctions, is increasing investment in companies building semiconductor manufacturing and supply chains in China.

Huawei increases chip investment in China

In 2019, around the time Washington began imposing sanctions on Huawei and other Chinese manufacturers, Huawei founded Hubble Technology Investment, which, according to analyst firm PitchBook, has financially supported 56 companies since its inception.

These include emerging chip designers and manufacturers, as well as companies involved in semiconductor component manufacturing, design software development, and chip manufacturing equipment.

PitchBook also said nearly half of the investments were made in the past six months as Huawei’s problems are compounded by its limited ability to purchase mission-critical chips with US technology. Huawei said last month that it would have lost around a third of its revenue in 2021 due to US sanctions.

Huawei did not disclose the size of the investment, but it has invested tens of millions of dollars in multiple companies, according to the Tianyacha database that tracks company registrations in China.

China has made chip technology self-sufficiency a national priority. However, this proved to be a daunting task and many of the initiatives have failed. According to Businesshala, at least six large Chinese chip projects have failed, among other things because of the high complexity of the development of high-performance chips and the enormous costs of this work.

According to S&P Global Market Intelligence, in early December 2021 alone, Chinese chipmakers raised $ 26.5 billion through IPOs, private securities placements and asset sales, 9% more than the previous year. In addition, the Chinese government has pledged billions of dollars to support domestic chip manufacturing.


About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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