Huawei is reportedly partnering with Shenzhen-based manufacturer SwaySure to establish a domestic DRAM production facility, aiming to secure a captive supply of memory for its advanced AI accelerators.

Key Points

• Huawei and SwaySure are allegedly collaborating on a 12-inch wafer fab utilizing a 28nm process to produce DRAM.
• The initiative aims to bypass US export controls that restrict Chinese access to high-bandwidth memory (HBM) from global suppliers.
• Huawei previously introduced its HiBL 1.0 HBM, signaling a strategic shift toward vertical integration of CPUs, SSDs, and memory.
• Chinese manufacturer CXMT is rapidly expanding capacity, with projections to capture 17% of the global DRAM market by 2028.
• Both Huawei and SwaySure are currently listed on the US Commerce Department's Entity List, complicating international supply chain integration.

Why it Matters

This move represents a significant shift in the semiconductor landscape as Huawei attempts to build a self-sufficient ecosystem to sustain its AI infrastructure despite heavy trade sanctions. While increased domestic production in China may eventually challenge the global memory oligopoly, most of this new capacity is expected to satisfy internal demand rather than lower prices for international consumers.