[News] Huawei-Related Firms Spur China’s Chip Buildout Across Materials, Photoresist, and EDA

As China doubles down on technological independence, Huawei and its ecosystem of partners have been pivotal to the effort. According to Nikkei, after U.S. sanctions the company in 2019, Huawei set up investment arms, including wholly owned subsidiary Hubble, to back more than 60 semiconductor companies. These chip firms, linked to Huawei, are now accelerating acquisitions and capacity expansions as they work to build a self-sufficient domestic supply chain.

The report notes that while Huawei is not directly involved in the investments made by the companies it supports, these moves are strengthening its supply chain in ways that align with China’s national strategy. Below are some notable moves made by Huawei-related companies.

Huawei-Backed HHCK Moves to Consolidate China’s Packaging Materials Market

Jiangsu HHCK Advanced Materials, a maker of chip-packaging materials, which Huawei holds a 2% stake has completed full acquisition of a competing Chinese company for RMB 1.6 billion ($255 million), as Nikkei notes. HHCK ranks second in China in making heat-resistant epoxy resin material, while the target ranks first. Through the acquisition, HHCK will expand its production capacity and customer base at home and abroad.

Rapid Expansion Across Huawei-Linked Companies

Beyond acquisitions, Huawei-backed companies are also expanding their operations. Vertilite, in which Huawei holds a 4% stake, began operating a new facility in Jiangsu province this September. According to Nikkei, the RMB 550 million plant manufactures compound semiconductors for optical communications, a core technology in Huawei’s AI server infrastructure.

Other companies in which Huawei holds stakes are also moving quickly. As Nikkei notes, Shanghai Winscene Technology, a maker of photoresist used in circuit formation, is building a new factory in Shanghai. Aerotech, which supplies valves and gas pipes for chip manufacturing, is likewise expanding a facility in Hebei province.

Huawei-Linked Efforts Expand Across China’s Chip Chain

Huawei is also believed to be collaborating with China’s domestic EDA firms. According to ijiwei, citing Yicai, in October, Qiyunfang—a subsidiary of SiCarrier, a fast-rising semiconductor equipment maker reportedly linked to Huawei—unveiled two domestically developed EDA products with fully independent intellectual property rights.

Huawei is also expanding into other key parts of the chip supply chain. According to Nikkei, it is backing efforts to develop Zhuhai Cornerstone into an “end-to-end” Chinese semiconductor chemical supplier capable of competing with global leaders.

Notably, Huawei is working with SiCarrier, an emerging Chinese semiconductor equipment firm, according to Bloomberg. The report says the company secured a late-2023 patent using self-aligned quadruple patterning (SAQP) with deep-ultraviolet (DUV) lithography to achieve 5nm-class performance without EUV.

Read more

• [News] Huawei Reportedly Invests in 60+ Chinese Chip Firms to Build Homegrown Supply Chain
• [News] Decoding China’s Lithography Push to Challenge ASML: From SiCarrier to Alternative EUV Paths

(Photo credit: Huawei)