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Huawei's HiSilicon division signs a new agreement with a Chinese equipment-maker

HiSilicon signs what could be an important contract. (Source: HiSilicon)
HiSilicon signs what could be an important contract. (Source: HiSilicon)
HiSilicon is a group within Huawei responsible for the development of this OEM's in-house chipsets, the flagship Kirin mobile SoCs included. It has just signed a five-year deal with Shenzhen JT Automation Equipment, characterized as a collaboration on independent semiconductor processing. Therefore, the move could help Huawei circumvent the sanctions that prevent it working with US suppliers to help make its components.

Huawei has often insisted on going its own way with the in-house series of Kirin SoCs, which are produced according to original designs by the OEM's dedicated HiSilicon Technologies division. However, it was still dependent on actual foundries such as TSMC to actually make the wafers in question.

Supplies of those crucial components to Huawei became prohibited thanks to its ongoing US trade blacklisting, leaving the company to face the fact that it was not as independent in terms of chipsets as it once set out to be.

This may be why it has signed a new, 5-year "legally binding memorandum of understanding" with another Chinese company, Shenzhen JT Automation Equipment. This firm describes itself as a maker of tools in the "intelligent manufacturing" and optoelectronics spaces, which, apparently, leads HiSilicon to believe it is the ideal partner to work with on true in-house, end-to-end semiconductor production.

Therefore, Huawei may see this new agreement as a way around the sanctions that prevent it working with normal partners such as Qualcomm and Samsung, based in the US or US-ally nations that have pledged to uphold the blacklisting.

There is no guarantee this will allow Huawei to resume its SoC ambitions, of course; then again, it has worked out well for Shenzhen JT in the meantime. Its stock price went up by ~20% in the wake of the announcement of its new association with HiSilicon.

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Deirdre O'Donnell
Deirdre O'Donnell - Senior Tech Writer - 5109 articles published on Notebookcheck since 2018
I became a professional writer and editor shortly after graduation. My degrees are in biomedical sciences; however, they led to some experience in the biotech area, which convinced me of its potential to revolutionize our health, environment and lives in general. This developed into an all-consuming interest in more aspects of tech over time: I can never write enough on the latest electronics, gadgets and innovations. My other interests include imaging, astronomy, and streaming all the things. Oh, and coffee.
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2021 07 > Huawei's HiSilicon division signs a new agreement with a Chinese equipment-maker
Deirdre O'Donnell, 2021-07- 7 (Update: 2021-07- 7)