Huawei is reportedly supporting a major DRAM manufacturing project in China as it seeks to reduce its exposure to foreign suppliers, US trade restrictions, and the worsening global memory shortage.
The reported project involves SwaySure Technology, a Shenzhen state-backed memory company said to have close links with Huawei. The proposed 12-inch wafer plant would initially use a 28nm process and target a monthly production capacity of 140,000 wafers.
Project Remains Unconfirmed
The latest report is based primarily on information published by the Semiconductor Insider account on X. Neither Huawei nor SwaySure has formally announced a new partnership or confirmed the production target.
Wccftech rated the claim as only “plausible,” noting that it had limited independent corroboration. Huawei has also not commented publicly on the latest report.
The 28nm process and 140,000-wafer capacity figures are not entirely new. Similar details were reported when SwaySure was established in Shenzhen in 2022, suggesting that the latest information may relate to the expansion or progression of an existing project rather than a completely new factory.
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
SwaySure Has Government Support
SwaySure describes itself as a memory-chip developer and manufacturer financed by a state-owned investment organisation. It was founded in March 2022 and has a state-backed ownership background in Shenzhen.
The company focuses on developing and manufacturing memory products for consumer electronics, vehicles, and other applications.
Financial Times previously reported SwaySure as the operator of one of several semiconductor facilities developed in Shenzhen with local government support. Industry sources said Huawei helped some related companies with staff, technology, and fundraising.
Huawei, however, denied that SwaySure and several other semiconductor companies were its affiliates. The company said it was incorrect to attribute all semiconductor activity around the Shenzhen facilities directly to Huawei.
Experienced Executives Recruited
SwaySure has recruited executives with extensive experience in the international semiconductor industry.
Its chief executive, Liu Xiaoqiang, previously managed fabrication facilities for Taiwan Semiconductor Manufacturing Company, according to reports.
The company also appointed Yukio Sakamoto, the former chief executive of Japanese DRAM manufacturer Elpida Memory, as its chief strategy officer. The appointments were first reported when SwaySure began operations in 2022.
Their experience could help SwaySure develop DRAM manufacturing processes, an area in which Huawei itself has comparatively limited direct production experience.
Reducing Dependence on Foreign Memory
Huawei currently depends on outside manufacturers for many of the memory chips used in smartphones, telecommunications equipment, vehicles, and AI hardware.
Domestic production could provide the company with another source of memory if foreign shipments become restricted or too expensive.
Huawei has faced US technology restrictions since 2019. These controls have limited its access to advanced chips, manufacturing equipment, and foreign suppliers, encouraging the company to develop a more self-sufficient semiconductor supply chain in China.
A large domestic DRAM facility could therefore reduce Huawei’s dependence on Samsung, SK hynix, and Micron, which collectively dominate the global DRAM market.
Memory Shortage Adds Urgency
The reported project comes as the memory industry struggles to keep up with demand from AI data centres.
SK hynix CEO Kwak Noh-jung recently warned that the industry could experience its worst-ever supply shortage in 2027. He expects demand to continue exceeding production capacity beyond 2030 despite major investments in new factories.
AI companies are consuming growing quantities of high-bandwidth memory and conventional DRAM. The shortage has already increased component prices and placed additional pressure on manufacturers of smartphones, PCs, vehicles, and other electronics.
Producing memory locally could give Huawei more control over its supplies and manufacturing costs. However, building a competitive DRAM plant requires significant investment, specialised equipment, and years of process development.
No Production Timeline Confirmed
Reports do not provide a confirmed construction schedule or date for mass production.
It is also unclear what type or generation of DRAM SwaySure initially plans to manufacture. A 28nm production process would likely target established memory applications rather than the most advanced high-bandwidth memory required by cutting-edge AI processors.
For now, the reported factory should be treated as an unconfirmed Huawei-linked project. Nevertheless, SwaySure’s existing state support, experienced management, and previously reported connections to Huawei show that China is continuing its broader effort to build a domestic memory supply chain.
Stay Connected with ProPakistani
Get the latest tech news, telecom insights, and product launches wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
