Huawei is expanding its R&D center for chip equipment in Shanghai

Huawei Technologies is constructing a semiconductor research center in Shanghai to improve its chip supply chain, aiming to build advanced lithography machines.

Huawei Technologies is bolstering its chip supply chain in response to a U.S. crackdown by constructing a sizable research and development center for semiconductor equipment in Shanghai. Huawei aims to construct lithography machines for advanced semiconductors, but its access to these tools, dominated by Japan's Nikon and Canon and the Netherlands' ASML, is severely limited by Washington's export restrictions.

Industry officials, people with knowledge of the situation, and local chipmakers told the media that Huawei is offering compensation packages up to twice as high as what they are willing to pay to staff the new center. According to them, the company has already hired a large number of engineers with experience working with top global chip tool builders like Applied Materials, Lam Research, KLA, and ASML. They also mentioned that recent and potential hires include veterans of the chip industry with over 15 years of experience at top chipmakers like TSMC, Intel, and Micron.

Washington's stricter export regulations in recent years have also affected China's labor market, particularly by making it more challenging for Chinese nationals to work in the nation for foreign semiconductor companies. As a result, Huawei and other local businesses now have access to more elite talent. However, semiconductor industry managers claim that although Huawei offers a great benefits package, its workplace culture can be difficult.