Huawei's chip revenue is projected to hit $12 billion by 2026, according to a report. This forecast comes as China has provided billions of dollars in grants to the company following U.S. export controls.
The U.S. imposed export restrictions on Huawei in recent years, limiting its access to advanced chips and technology. In response, China has poured significant financial support into Huawei to help the company develop its own chip capabilities. The grants are part of a broader effort by China to boost its domestic semiconductor industry and reduce reliance on foreign suppliers.
Huawei, once a leading smartphone maker, has faced challenges due to U.S. sanctions. The company has shifted focus to building its own chip business, including designing and manufacturing chips for various applications. The expected revenue growth reflects Huawei's progress in this area.
China's support for Huawei is seen as a key part of its strategy to become self-sufficient in chip production. The country has been investing heavily in semiconductor research and development, aiming to close the gap with global leaders like the United States.
The $12 billion revenue projection for Huawei's chip division highlights the potential impact of China's investment. However, the company still faces significant hurdles, including technological challenges and ongoing trade tensions.
Analysts say the outcome will depend on how effectively Huawei can scale up its chip production and compete in the global market. The U.S. export controls remain a major obstacle, but China's financial backing provides a strong foundation for Huawei's growth.