Huawei could become a DRAM fabber (www.blocksandfiles.com)

Huawei is reportedly moving towards establishing its own DRAM fabrication plants in response to a global shortage of DRAM and high-bandwidth memory (HBM), which has been exacerbated by increasing demand from companies like Nvidia for AI applications. As major suppliers like Samsung, SK Hynix, and Micron dominate over 85% of the DRAM market, Huawei's potential entry could disrupt existing supply chains and increase competition. The Chinese government is keen on boosting domestic semiconductor production, aiming for self-reliance in advanced technology. Huawei, alongside ChangXin Memory Technologies (CXMT), is developing advanced DRAM technology despite restrictions on acquiring US-based fabrication tools. The strategic move grants Huawei the ability to manufacture DRAM for its own wide-ranging product line, including processors and mobile devices, making it less dependent on external suppliers and insulated from geopolitical tensions. The anticipated DRAM complex in Shenzhen is expected to produce an impressive 140,000 wafers per month at a 28nm process technology, indicating a significant ramp-up in production capability. This development could enhance Huawei's competitiveness and reinforce its position as a key player in the semiconductor industry, especially in light of restrictions on US technological imports.