Satellite images reveal that Huawei is rapidly building semiconductor production lines in China

Satellite images have revealed that a Huawei factory built in the Guanlan district of Shenzhen, China, has been undergoing rapid development since construction began in 2022.

Satellite images reveal Huawei's advanced chip production line in China
https://www.ft.com/content/afd618f8-12c9-4297-b2a9-49f7dc548da4

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The equipment required to manufacture high-performance semiconductors, 'EUV (extreme ultraviolet) exposure equipment,' is monopolized by ASML of the Netherlands, and because of pressure from the United States , ASML is prohibited from exporting EUV exposure equipment to China, China is unable to manufacture high-performance semiconductors domestically. However, even if China tries to import high-performance semiconductors from TSMC of Taiwan, which manufactures semiconductors using EUV, or NVIDIA of the United States, which outsources semiconductor manufacturing to TSMC, it is also unable to do so due to pressure from the United States, which is a barrier for China.

For this reason, China is focusing on developing its own EUV exposure equipment. In March 2025, it was reported that China was prototyping an EUV exposure equipment using laser-induced discharge plasma (LDP) technology instead of the conventional laser-produced plasma (LPP) technology used by ASML, raising the possibility that technological innovation will occur in China, making the pressure from the United States completely meaningless.

On the other hand, China has a large share of the global market for low- to medium-performance semiconductors, and continues to try to develop high-performance semiconductors using older DUV (deep ultraviolet) scanners. At the time of writing, the minimum 7nm and 6nm process semiconductors considered to be 'high performance' have already been successfully manufactured using DUV, and preparations are underway to manufacture the even higher performance 5nm process using DUV.

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Huawei's main need is for 7nm process chips. According to new reports, Huawei is dissatisfied with the production capacity of China's SMIC, which has been outsourcing its manufacturing to them, and is trying to cover the entire chip production in-house, from sourcing materials, chemicals, and wafer manufacturing equipment to chip manufacturing equipment, and the actual chip design and manufacturing.

In addition, satellite images have revealed that a Huawei factory in Guanlan, Shenzhen, is undergoing rapid development.

Huawei plans to produce 7nm smartphone chips as well as AI chips called Ascend AI at the Guanlan factory, according to people familiar with the matter, marking the company's first attempt to manufacture its own high-end chips.

Move the bar to the right to see images of Kanran in April 2022, and move it to the left to see images of Kanran in April 2025.

The Financial Times noted that 'the facility, the details of which have not been reported until now, underscores Huawei's ambitions to become a leader in semiconductors and bolsters China's efforts to challenge the United States in technological developments such as AI.'

'We've never seen one company trying to do everything when it comes to chips,' said Dairan Patel, founder of chip consultancy SemiAnalysis.

The Guanlan factory is close to fabrication plants operated by chip makers Pengxinwei and Shenzhen Pensun, both of which are believed to have ties to Huawei. Sources say Huawei has also invested in semiconductor manufacturing facilities in Shanghai, Ningbo and Qingdao, suggesting ambitious development plans are afoot.