Huawei was banned in the US and, in order not to be left behind, entered into a partnership with SMIC for the installation of a semiconductor chip factory that will receive investments of US$ 10 million

Huawei remains barred by the US from having commercial relations with US companies, and this makes the company's future uncertain in the smartphone and mobile device sector. Currently, the Chinese manufacturer has a partnership with the semiconductor chip maker Semiconductor Manufacturing International Corporation (SMIC), aiming to have its own semiconductor and processor factory. Since the US blockade will not be eased in the near future, with an opposite scenario more likely, the company will have rethought its strategy in order not to be completely outpaced by other rivals.

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Huawei and SMIC may build a semiconductor factory

With the ban by the US and according to new rumors, Huawei will have signed an agreement with the local manufacturer SMIC aimed at installing a new manufacturing unit for processors, semiconductors and other chips, which are necessary for smartphones and mobile devices.

The Reuters report mentions, as well as SMIC's production capacity, Huawei's chip design and concession capabilities. It is important to remember that factories with the capacity to produce semiconductors in the world are in short supply. Therefore, if Huawei and SMIC reach an effective agreement, a new semiconductor factory in mainland China could emerge.

Both companies are blacklisted in the US.

Both companies are blacklisted in the US, so the partnership could bring benefits to both tech giants. Huawei would thus have greater capacity to manufacture semiconductor chips for its products, something that would contribute to reducing the difficulties resulting from the blockade and sanctions imposed by the US.

Currently, Huawei is severely constrained in terms of semiconductor production, which is also affecting its market position, in addition to compromising its access to other important technologies for its activities and equipment, such as mobile devices. SMIC is the most advanced Chinese company in the manufacture of semiconductor chips. It is, in fact, a foundry with the know-how to produce chips at 7nm, for example. It is also a company partially supported by the Asian country.

Huawei estimates to invest US$ 10 million in the new factory

Huawei's investment will reach around 10 million dollars. Therefore, what is expected is a new advanced factory, equipped with the most modern production lines.

It is not known for sure who will own the new semiconductor chip factory but, in view of the investment that will be made, the ownership may belong to Huawei.

In any case, the new facilities may be managed by the two entities in China. However, it is necessary to wait for more information to assess the exact scope of this supposed partnership between the two companies.

After meeting with Brazilian Minister, owner of Tesla Elon Musk thinks about meeting the demand for semiconductors and Brazil may receive a factory

In a meeting with Fábio Faria, Minister of Communications, last Monday (15), Elon Musk stated that, to escape the microchip crisis that is taking place in the world, there may be no other choice but to invest in a semiconductor factory .

Brazil would be one of the most likely countries to receive the Tesla CEO's contribution. The subject came after Faria proposed the construction of a Tesla factory in the country and mentioned that he also plans to transform Brazil into an important country in the production of semiconductors again, something that happened until the 80s.

The meeting in question in the featured photo, in fact, would be for negotiations on Starlink's satellite installation, which also has Elon Musk as its CEO, to monitor deforestation in the Amazon and connect schools located in remote areas with super updated internet.