With the assistance of a governmental investment fund, Huawei is evading America’s semiconductor ban

The American chip ban on Huawei has prevented the company from obtaining cutting-edge chipsets, but it is making a lot of effort to get around these restrictions. It has already developed a unique 7nm 5G-capable chipset, allaying worries that Huawei might not be able to produce 5G phones following the ban.

According to reports, Huawei has apparently teamed up closely with a state investment fund to get around the bans and create a reliable, independent semiconductor network. Huawei, on the other hand, disputes that it is getting any support from the government. Regarding allegations of its strong ties to governmental agencies, that has been the company’s historical stance.

Huawei’s chip issues might soon go away

According to Bloomberg, Huawei is receiving assistance from an investment fund established by the city government of Shenzhen in 2019 to build a “self-sufficient chip network.” Through this agreement, Huawei would have access to businesses that are creating lithography machines, a necessary piece of equipment for producing high-end chipsets.

Normally, these businesses would have to import lithography machines into China, but the sanctions make that impractical at this time. According to reports, Huawei has even hired several former workers from ASML, a Dutch company that leads the world in extreme lithography equipment, to work on this project. The result of this agreement is reportedly the 7nm HiSilicon Kirin 9000S, which allows Huawei to reenter the 5G smartphone market.

It’s also no secret that China is trying to overcome the sanctions imposed by the US and its allies by pouring billions of dollars into its domestic chip industry. Huawei will be able to quickly pick up the pace of development and begin to reclaim its lost prominence in the global smartphone market with the assistance of a local ecosystem.