TECH NEWS – In response to the DRAM shortage, the Chinese tech giant is taking a particularly bold step.

To minimize the risk, companies are employing the smart tactic of involving as many suppliers as possible in the process, exactly as Apple does when testing CXMT’s memory modules. However, Huawei has developed a different strategy. With the help of various organizations, the Chinese company aims to circumvent U.S. trade sanctions and the pitfalls of the AI boom by establishing its own memory manufacturing plant. The Chinese government, DRAM chip manufacturer Swaysure, and Huawei have joined forces to build a 12-inch memory manufacturing plant. This plant will protect them from the current supply shortage and provide Huawei with a safety net in case the Trump administration blocks products supplied by Samsung, SK Hynix, and Micron.

China’s Huawei is pushing harder into DRAM with a new state-backed fab.

Swaysure (Shenzhen Yiweixu), with Huawei ties and government support, is building a 12-inch wafer fab in Shenzhen.

Planned capacity is 140,000 wafers per month starting at 28nm. The company recruited… https://t.co/nXkeOXLxJd pic.twitter.com/eNAu9SDT9V

– Semiconductor Insider (@SemiconductorsX) July 11, 2026

These three companies account for 95% of the world’s memory supply, which is why the plant will initially produce 28-nm DRAM with a monthly capacity of 140,000 silicon wafers. To ensure the success of this plan, Huawei appointed a former TSMC executive as CEO and hired a former Elpida executive as chief strategist. Although Huawei has years of experience as a fabless semiconductor manufacturer, its expertise in DRAM production is limited. This is why Huawei is partnering with Swaysure. The Chinese government’s involvement could speed up the manufacturing plant’s approval process and address any legal loopholes.

Furthermore, Huawei would benefit from securing significant government funding to bring its plans to fruition sooner. The current DRAM shortage will only hinder the company’s future smartphone shipments because rising costs will make production more expensive, rendering devices unaffordable for consumers. The latest plan is expected to resolve this issue. If the new factory does not disrupt the supply chain, Huawei could be among the first to procure DRAM chips at lower prices.

Source: WCCFTech