Huawei is building a “mega chip facility” in China’s southern city of Shenzhen to produce its Kirin mobile chips and Ascend AI processors, focusing on 7nm process technology, according to Canadian media outlet Wccftech. In recent years, Huawei’s Ascend chips have seen strong demand, but limited production capacity has created supply challenges. The report claimed that Huawei is accelerating efforts to vertically integrate its AI supply chain. The new facility is located near local foundries such as Pengxinwei (PXW) and Shenzhen Pensun (PST), which are believed to be part of Huawei’s supply chain. This suggests that Huawei is developing a “foundry hub” to streamline chip production and foster closer collaboration with supply chain partners, enhancing its self-sufficiency in China’s domestic semiconductor ecosystem. [Wccftech]
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