With a new partnership established by 90 Chinese companies, the companies will work together to produce chips nationally to avoid the effects of US sanctions.
Information published by the China Ministry of Industry and Information Technology (MIIT) website reveals that 90 Chinese companies have made a joint application for the establishment of the National Integrated Circuit Standardization Technical Committee. In other words, 90 Chinese companies, including Huawei, Xiaomi and SMIC, will join forces to develop the semiconductor industry nationally.
Collaboration in chip production
The fact that Huawei and ZTE were grappling with US bans revealed the need for local chips. In this regard, semiconductor companies such as SMIC are trying to close the gap, but it is not enough. In addition, SMIC has a ban on access to US technologies. Most of the other chipmakers in the country are either technology-poor or small-scale businesses.
With this partnership, companies will focus on coordinating weak industries and encouraging integrated circuit standardization work and strengthening the standardization team structure.
Among the 90 companies in the partnership are strong brands such as Huawei, HiSilicon, Xiaomi, Datang Semiconductor, ZTE Microelectronics, SMIC, Datang Mobile, China Mobile, China Unicom, ZTE and Tencent.