[News] Huawei Reportedly Invests in 60+ Chinese Chip Firms to Build Homegrown Supply Chain

According to a report from Nikkei, Huawei has reportedly invested in more than 60 Chinese semiconductor-related companies since it came under U.S. sanctions in 2019, as part of a broader effort to build a self-reliant supply chain.

As highlighted by Nikkei, Huawei has ramped up its investments through Hubble, a fully owned investment firm established in 2019 after the U.S. restricted the company’s access to American technology.

Citing data, Nikkei notes that Hubble has backed over 60 Chinese companies spanning various segments of the semiconductor supply chain. Nikkei also verified via the Chinese corporate database Tianyancha that Hubble holds equity stakes in more than 50 firms.

Its investments cover the full semiconductor supply chain—from design and materials to manufacturing and testing—with most of its shareholdings remaining below 10%, according to Nikkei.

Notably, Huawei invested last year in Suzhou Carbon Semiconductor Technology, a company specializing in carbon nanotube-based wafers, which outperform traditional silicon wafers, as reported by Nikkei.

Nikkei also points out that Huawei invested in Huahai Chengke New Material in 2021. The company produces packaging materials essential for manufacturing HBM, a key component in generative AI applications.

Huawei has been actively developing a domestic chip supply chain and enhancing its technological capabilities. According to a Financial Times report from May, Huawei is building an advanced chip production line in Shenzhen to manufacture 7nm smartphone and Ascend AI processors, implying its first move to produce its own high-end chips.

All of Huawei’s advanced chips are said to be produced in China—designed by its subsidiary HiSilicon and manufactured by SMIC and other local foundries, Nikkei indicates.

Notably, rising semiconductor development costs may have contributed to Huawei’s net loss of around 400 million yuan (approximately USD 56 million) for the quarter ending in December, according to Nikkei. The company’s annual report shows a 28% drop in net profit for 2024, despite continued revenue growth. Reuters and AP attribute the decline to increased spending on future-focused R&D investments.

The company has also reportedly maintained ties with SiCarrier, a rising Chinese semiconductor equipment firm. According to Reuters, SiCarrier is reportedly seeking USD 2.8 billion in its initial fundraising round. Reuters adds that SiCarrier and its parent have filed 92 patents, covering areas such as DUV lithography components and multi-patterning techniques—key technologies for helping China close the gap in EUV tools.

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(Photo credit: Huawei)