Huawei is significantly deepening its footprint in China’s semiconductor landscape as it pushes to build a homegrown supply chain, according to a report by Nikkei Asia. Since being placed on the U.S. Entity List in 2019, the Chinese tech giant has reportedly invested in over 60 domestic semiconductor-related firms via its venture capital arm, Hubble Technology Investment Co.
Founded in 2019 in direct response to mounting U.S. sanctions, Hubble has emerged as a strategic lever in Huawei’s effort to localize its supply chain and reduce dependency on foreign technologies. Citing data from the Chinese corporate registry Tianyancha, Nikkei reports that Hubble currently holds equity stakes in more than 50 firms, typically below the 10% threshold.
These investments span the full semiconductor value chain—from chip design and raw materials to fabrication and final testing. Among the more noteworthy moves is Huawei’s 2023 investment in Suzhou Carbon Semiconductor Technology, a company developing carbon nanotube-based wafers that aim to outperform traditional silicon. The firm’s innovation could represent a breakthrough in next-generation chip performance.
Huawei also invested in Huahai Chengke New Material back in 2021. The company manufactures specialized packaging materials used in high-bandwidth memory (HBM), which is increasingly critical for powering generative AI models and advanced computing applications.
Recent reports from the Financial Times suggest Huawei is now building an advanced chip manufacturing facility in Shenzhen, with the goal of producing its own 7nm smartphone processors and Ascend AI chips. If true, this marks Huawei’s first move into high-end chip production under its own roof—further integrating design, fabrication, and packaging within China’s borders.
Most of Huawei’s advanced chips are designed by its HiSilicon subsidiary and manufactured by local foundries, such as SMIC, in an apparent bid to insulate itself from geopolitical risk.
Despite its aggressive expansion, Huawei’s investment-heavy strategy has come at a financial cost. The company reported a quarterly net loss of approximately 400 million yuan (about USD 56 million) at the end of 2024, with full-year net profits dropping 28% year-over-year. Analysts from Reuters and AP attribute the decline to surging R&D expenditures, particularly those targeting next-generation chip technologies.
Huawei also maintains close ties with SiCarrier, an emerging Chinese semiconductor equipment maker reportedly seeking USD 2.8 billion in fundraising. SiCarrier and its parent firm have filed 92 patents, covering core chipmaking technologies including deep ultraviolet (DUV) lithography and multi-patterning—both considered vital as China strives to narrow its gap with global leaders in EUV equipment.
Huawei’s expanding semiconductor portfolio reflects a broader shift in China’s industrial strategy: empowering national champions to localize high-tech supply chains. Whether these efforts can overcome existing technical roadblocks—and geopolitical headwinds—remains a central question for China’s chip ambitions in the years ahead.
Huawei’s commitment to building a robust domestic semiconductor ecosystem is impressive! Their strategic investments showcase resilience in the face of challenges. Exciting times for China’s chip ambitions!