Rumor

Hua Hong Semiconductor develops 7nm technology and prepares for mass production with Huawei

Monday, March 16, 2026 at 09:39 AM

Hua Hong Semiconductor is reportedly preparing for mass production of 7nm chips in collaboration with Huawei. Sources indicate the Chinese foundry has developed 7nm-class capabilities and is working closely with Huawei to secure domestic supply of advanced logic components.

Context

China’s second-largest chipmaker, Hua Hong Semiconductor, has reportedly achieved a breakthrough in developing 7nm process technology through its subsidiary, Huali Microelectronics. The firm is currently preparing for mass production at its Shanghai facility in collaboration with Huawei Technologies. This development makes Hua Hong only the second Chinese foundry, alongside SMIC, capable of manufacturing chips at this advanced node despite ongoing U.S.-led export restrictions on high-end lithography equipment. This move is a critical component of Beijing’s broader strategy to quintuple domestic output of 7nm and 5nm chips within the next two years to support local AI infrastructure. Markets reacted sharply to the news on March 16, 2026, with Hua Hong shares jumping over 7% in Hong Kong and 12% in Shanghai. The partnership is particularly vital for Huawei, as it prepares to launch its next-generation Ascend 950 AI chipsets, which require high-performance domestic fabrication to bypass reliance on foreign suppliers like TSMC and Nvidia.

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