Huawei Plans Its Own DRAM Factory to Reduce Memory Supply Risks

Huawei is reportedly working with the Chinese government and memory chipmaker Swaysure to build a new DRAM production facility, giving the company more control over memory supply during the current shortage. The plan also reduces Huawei’s dependence on major global suppliers while helping it manage the effects of US trade restrictions.

According to SemiconductorsX, the proposed 12-inch memory plant could produce up to 140,000 wafers per month once mass production begins. The facility will reportedly focus on 28nm DRAM, which should support Huawei’s smartphones, networking products, and other hardware that require a steady supply of memory chips.

Samsung, SK hynix, and Micron currently control most of the global memory market, so any disruption in shipments can create serious problems for companies that depend on them. Huawei’s own production facility would give it a more stable source of DRAM and reduce the risk of higher component costs affecting future products.

Huawei has experience designing processors and other chips, but DRAM manufacturing requires different production methods and specialist knowledge. Swaysure will provide that expertise, while the Chinese government can support the project through funding, approvals, and access to production infrastructure.

The project has also brought in experienced semiconductor executives, including a former TSMC director as chief executive and a former Elpida executive as a strategist. Their involvement should help Huawei and Swaysure manage production, improve yields, and prepare the facility for large-scale manufacturing.

If the factory reaches its planned capacity without major delays, Huawei will gain better control over pricing and supply. That advantage could protect its smartphone business from rising DRAM costs while supporting its wider push to build a more independent semiconductor supply chain.