Those investments form a key part of the company’s broader efforts to build a self-reliant supply chain, according to Japanese media reports.
Huawei is said to have ramped up its investments through Hubble, a fully owned investment firm established in 2019 as a response to US efforts to restrict Chinese access to American technology.
Hubble has backed over 60 Chinese companies spanning various segments of the semiconductor supply chain and is said to hold equity stakes in more than 50 firms from design and materials to manufacturing and testing.
In one of its latest investments Huawei took a stake in Suzhou Carbon Semiconductor Technology, a company specialising in carbon nanotube-based wafers, which outperform traditional silicon wafers.
Huahai Chengke New Material is another company in which Huawei has taken a stake – most stakes are around or under 10 per cent – and it produces packaging materials that are essential for manufacturing HBM, a key component in generative AI applications.
Huawei has been actively developing its domestic chip supply chain and enhancing its technological capabilities and is said to be building an advanced chip production line in Shenzhen to manufacture 7nm smartphone and Ascend AI processors.
The company’s annual report showed a 28% drop in net profit for 2024, despite continued revenue growth, and that decline is being attributed to the company's increased spending on future-focused R&D investments and, once again, highlights the resilience of the Chinese technology sector.
