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Huawei building chip factory in China to mitigate US sanctions fallout: Report

Huawei is going to build a dedicated factory in Shanghai, where it will build chips without any American technology, reported Financial Times. This marks another move by the Chinese telecommunications equipment giant to ensure business continuity in the face of American sanctions. Huawei has been unable to use American technology since the country placed it on its Entity List in May 2019 citing national security reasons. The plant will likely be a huge boost for the company since it is reportedly running out of chips to use in its smartphones. It will reportedly be operated by Shanghai IC R&D Center, a chip research company backed by the Shanghai municipal government. The company will begin by initially experimenting with making low-end 45-nm chips, a technology considered inferior to newer architectures, per FT. Huawei will plan to make more advanced 28nm chips by the end of 2021, which will be used in its smart TVs and internet of things (IoT) devices, several sources told the publication. Huawei will then begin making even more advanced 20nm chips by late 2022, which could be used in the company's controversial 5G equipment. New plant won't help smartphone business: A source told the publication that the new production line will not help Huawei's smartphone business. Smartphones generally use chipsets produced with more advanced technology. For instance, Huawei's current flagship phones, the Mate40 series, are built using a 5nm technique. According to a report from two months ago, Huawei  has 8.8 million units of these 5nm "Kirin 9000" chipsets available, which…

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