Asian Tech Press (Dec 30) -- According to Taiwan media "Economic Daily News" reported that Huawei intends to build a fab in Shenzhen with the power of SMIC, the country's largest foundry, to cut into wafer manufacturing, through official funding, Huawei's chip design capabilities, and SMIC's semiconductor manufacturing technology and experience, and also sought the cooperation of TSMC supply chain to expand the chip's independent manufacturing capabilities.

Industry sources estimate Huawei investment in the plant's initial construction amounted to about ten billion U.S. dollars. The industry sources believe that, for Huawei, money is not a problem. The focus is obtaining a wealth of equipment and plant construction resources quickly into mass production.

The industry sources revealed that Huawei is looking for partners to promote its fab plans and will join hands with SMIC Southern. Due to the involvement of mainland official funding support, the amount of investment in individual companies is still unclear, how to bypass international patents and technology are problems. SMIC South was established by SMIC International, SMIC Holdings, the State Fund, Shanghai IC Fund jointly funded.

Huawei has not yet officially responded to this report.