Hua Hong Group is preparing to manufacture advanced chips suited for artificial intelligence applications, marking a significant step in China’s bid to strengthen its domestic semiconductor sector. The company’s progress is expected to further reduce China’s reliance on foreign chipmakers as Beijing prioritizes self-sufficiency amid shifting international trade policies.
According to Reuters, citing individuals briefed on the matter, Huali Microelectronics, Hua Hong Group’s contract manufacturing division, is finalizing preparations for a 7-nanometer chipmaking process at its Shanghai facility. Huawei Technologies has reportedly collaborated with Hua Hong throughout the development of this technology.
The move positions Hua Hong to utilize a chip manufacturing node previously regarded as out of reach for many Chinese manufacturers.
The ongoing initiative supports Beijing’s broader strategy to bolster homegrown semiconductor capabilities. Despite recent relaxations in U.S. export rules that permitted companies like Nvidia to continue supplying certain AI chips to Chinese clients, efforts to establish a resilient local supply chain persist.
Test runs for the 7 nm process have commenced, with production volumes initially targeted at several thousand wafers per month by the end of the year, according to Reuters’ report. Biren Technology, a Chinese company specializing in graphics processing units, has also begun evaluating its chip prototypes using this production line.
Should Hua Hong bring these 7 nm chips to market, it would become the country’s second chipmaker capable of this technology, following Semiconductor Manufacturing International Corp (SMIC). Hua Hong currently stands as China’s second-largest semiconductor producer.
