It’s Happening: Huawei to Finally Start Building Car Chips

Huawei will build chips with the help of a new joint venture 1 photo
Photo: Yicai Global
The global chip shortage is a nightmare for the car industry, as automakers are forced to temporarily halt the production of some models simply because there aren’t enough semiconductors to power key features of the cars.
Several tech giants have already confirmed their plans to step in and help with the never-ending shortage, including Intel and Samsung. Still, everybody was waiting for another big name to confirm its intention to manufacture car chips.

It’s Huawei, the Chinese behemoth whose smartphone business has been devastated by the sanctions announced in mid-May 2019 in the United States. Huawei is now looking into all kinds of new industries, including the car market, as its leadership team believes investing in vehicles could help offset the decline experienced by phones.

Huawei has already partnered with a series of carmakers to provide the platform and software to power their smart capabilities. Thanks to a partnership with state-owned Chongqing Changan Automobile, the company is now getting ready for the next big step.

A report from Reuters reveals that the two companies have been discussing for several months plans to manufacture car chips. Now it looks like a new joint venture that should help pave the way for this expansion is likely to be announced rather sooner than later.

While for the car industry, this is pretty much a breath of fresh air, it remains to be seen if Huawei-made chips end up on other vehicles too, as the one to benefit the most from this deal is first and foremost Huawei itself.

That's because the company is also believed to be working on its very own electric vehicle that could at one point compete against the upcoming Apple Car. Hence, building chips for others provides Huawei with the necessary know-how that it needs to make sure everything would be working properly on its own model.

The cited source reveals Huawei is currently in talks to take over the EV unit of a local carmaker, though, at this point, no further specifics have been provided. It looks like a Huawei-branded EV is just a matter of time, obviously powered by a Huawei-made chip.
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About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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