[News] Huawei Reportedly Advances Chip Chemical Push via Zhuhai Cornerstone, Rivaling Global Giants

China’s Huawei is reportedly backing efforts to create a semiconductor chemical firm capable of competing with global giants, as part of an ambitious push to establish a fully self-reliant domestic chip supply chain, according to a Nikkei report. The goal, sources say, is to develop the newly established Zhuhai Cornerstone into a comprehensive “end-to-end” supplier, on par with industry leaders such as Shin-Etsu Chemical, JSR, Merck, DuPont, and Dow.

Sources cited by Nikkei say Zhuhai Cornerstone aims to offer “turnkey solutions” that cover nearly all key materials required for chipmaking.

As noted in the report, sources indicate that the company is actively developing photoresists, chemical mechanical polishing (CMP) slurries, polishing pads, and other essential materials used in semiconductor production.

In addition, the company has spent the past two to three years recruiting top talent from Japan, South Korea, and Taiwan, while also establishing its own production lines and creating proprietary chemical formulations, according to sources cited in the report.

It is worth noting that Cornerstone and Huawei-linked semiconductor equipment maker Shenzhen SiCarrier Technologies share the same top legal representative, Yu Hai, according to the report citing corporate data platform Qizhidao. Yu serves as an executive board director at Cornerstone, while SiCarrier is a major shareholder in the chemical company, the report adds.

China’s Drive for Semiconductor Chemical Independence

The report notes that Washington has imposed multiple export controls on chipmaking equipment and has urged allies like Japan and the Netherlands to adopt similar restrictions. In response, some U.S. and Japanese chemical suppliers have become more cautious about selling to China, prompting Beijing to accelerate efforts to develop domestic alternatives in this area.

As highlighted by Reuters on May 28, sources report that the U.S. has instructed a wide range of companies to halt shipments to China without a license and has revoked existing licenses for certain suppliers. Among the affected goods are chemicals critical to semiconductor manufacturing, as Reuters notes.

As per the report citing SEMI, China was the world’s second-largest market for semiconductor materials in 2024, behind only Taiwan, with South Korea ranking third. The Chinese market expanded by 5.3% that year.

China’s leading chipmakers, such as SMIC, are actively testing and validating domestic chemical formulations, the report notes. The country has made notable progress in key areas such as sputtering targets and chemical polishing slurries.

Notably, according to the report, Chinese firms like Anji Microelectronics and Konfoong Materials are already supplying leading chipmaker TSMC.

Read more

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(Photo credit: Huawei)