Japanese semiconductor producer Sumitomo Electric Industries Ltd. plans to manufacture 5G base station chips in the United States from September, Nikkei Asia reported on Saturday.
Huawei Technologies Co. Ltd.'s supplier intends to make such a move due to potential supply chain issues in the West stemming from a global chip shortage and wants to raise its overall supply capacity by 100%, according to the report.
Chips made at the company's New Jersey plant will reportedly be supplied to the US- and Europe-based 5G equipment-making divisions of telecommunication firms such as Ericsson and Nokia.
