Huawei hopes that suppliers such as packaging and substrates will expand China's production capacity

Report on June 13 According to the Nikkei Chinese website, Huawei hopes that most of the subsequent production of chip packaging and printed substrates will be completed in China by the end of the year to increase control of its own supply chain.

It is understood that Huawei has proposed to domestic and foreign semiconductor-related suppliers that it hopes to achieve most of the expansion or movement in China by the end of this year. At present, many of the front-end manufacturing processes of semiconductors are scattered in Europe, Japan, South Korea, and Taiwan. It is relatively impossible to move arbitrarily, but Huawei has always hoped that the final process of chips such as packaging and testing, and subsequent printed circuit board manufacturing can be moved to China as much as possible. . It is understood that Huawei has suspended the verification of new suppliers, unless it already has Chinese production capacity or is willing to cooperate with production in China.

The source pointed out that Huawei's future supply chain strategy is to localize, with suppliers with Chinese production capacity as the primary strategic partner.

In addition to requiring suppliers to expand their Chinese production capacity, Huawei also actively supports the technological capabilities of Chinese suppliers. It is understood that Huawei has sent more than 100 technicians to the plant of China's largest semiconductor packaging and testing company, Jiangsu Changdian, last year to assist its technology upgrade, but "the progress is not as smooth as Huawei expected." Huawei's localization efforts began as early as 2018 when the U.S. suddenly cut off the supply of ZTE.