Huawei invested a substantial amount, around CNY12 billion ($1.66 billion), to develop advanced chipmaking machinery similar to ASML. This huge investment is made due to the US ban, which prevents Huawei from acquiring tools for chip production beyond 5nm.
As Huawei collaborates with SMIC to produce 7nm and upcoming 5nm processors, limitations on accessing tools for 14nm and 16nm FinFET processes hinder progress. Addressing ASML's monopoly, reportedly holding 90% of the market, Huawei aims to create a competitive environment in the chipmaking industry. The construction of the R&D center near Shanghai, spanning an area comparable to 224 football fields and employing over 35,000 individuals, signifies the scale of Huawei's endeavor.
In the pursuit of semiconductor self-sufficiency, Huawei focuses on attracting top semiconductor talent with lucrative compensation packages. Despite the ambitious goals, the process of establishing the factory, conducting research, and incorporating advanced chips into production will be time-consuming. Huawei's strategic investment in R&D reflects a long-term vision to overcome technological barriers and achieve chipmaking capabilities equivalent to industry leaders like ASML.
