Huawei’s Bold Chip Expansion Pushes Back Against US Sanctions

Huawei Technologies is ramping up its semiconductor ambitions with the rapid development of new manufacturing sites in Shenzhen, defying U.S. sanctions that have aimed to cut off its access to advanced chip technologies since 2019. Satellite images analyzed by the Financial Times reveal accelerated construction at three facilities in Shenzhen’s Guanlan district since 2022—an unmistakable signal of Huawei’s push toward chip self-sufficiency.

The expansion includes a Huawei-run facility focused on producing 7nm smartphone and Ascend AI chips, alongside two other sites operated by SiCarrier and SwaySure. Although officially unaffiliated, the three entities reportedly share staff and technology, suggesting close collaboration behind the scenes. These efforts are backed by local government support and align with China’s $47.5 billion “Big Fund” to boost domestic semiconductor production in the face of tightening US export controls.

Huawei’s resilience was notably demonstrated with the Mate 60 Pro, powered by a 7nm Kirin 9000s chip manufactured by SMIC. However, the company still relies on pre-sanction ASML equipment and faces significant barriers to reaching more advanced 5nm capabilities.

This expansion illustrates a broader digital-first strategy aimed at reimagining supply chains and reducing reliance on foreign technology—echoing national initiatives like India’s Operation Sindoor, which leverages ISRO’s satellite technology for strategic autonomy.

With robust state funding and partnerships with firms like SMIC, Huawei is positioning itself at the heart of China’s technological self-reliance strategy, sending a clear message of endurance amid global tech rivalry.