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Huawei reportedly has a way around the U.S. trade ban
The new Shanghai factory could make Huawei self-reliant in chip manufacturing.
What you need to know
Huawei is reportedly building a new chip factory in Shanghai, dedicated to making parts for its telecom hardware business.
If Huawei succeeds in manufacturing its own chips, the move could potentially bypass U.S. sanctions and maintain Huawei’s business in telecom infrastructures.
While Huawei plans to use its new chips for IoT devices and 5G network hardware, there’s currently no word yet on how the factory would affect Huawei’s phone business.
According to a recent report by the Financial Times, Huawei has plans to build a chip factory in Shanghai, which would be dedicated to manufacturing parts for its telecom hardware business.
Huawei has repeatedly faced significant hurdles in maintaining its telecom infrastructure business as the U.S. and other foreign governments continue to place further sanctions on the company. However, if the new Shanghai factory could make Huawei sel…