In Shenzhen, China, SwaySure's memory factory has entered at least the stage of running semiconductor processes. In the theory of Huawei's in-house DRAM production that resurfaced in July, the facility was described as a 28nm fab processing 140,000 12-inch wafers per month. However, this figure has been circulating for four years and is not an announcement of a new factory. What can be confirmed from public records is that SwaySure's production line actually exists and that its connection to Huawei's semiconductor network is reflected even in US export controls. From there to the mass production of HBM that Huawei is pursuing, there are still unfilled steps.
"140,000 Wafers/Month, 28nm" Has Been Around Since 2022
On July 16, 2026, Blocks & Files reported speculation that Huawei is building and operating a DRAM factory through a joint venture with SwaySure. The plan cited in the article involves 12-inch wafers, a 28nm process, and a monthly processing capacity of 140,000 wafers. An article published five days earlier by HuaweiCentral used the same figures, sourcing them from the X account Semiconductor Insider and a shared image.
However, the company description written in that very image states that SwaySure was established in March 2022 and was in the process of constructing a 12-inch line. EET China also reported in June 2022 that the company would enter DRAM starting from 28nm, eventually aiming for a monthly capacity of 140,000 wafers. The schedule at the time called for equipment installation in Q3 2023 and trial production in Q1 2024.
Therefore, this recent report cannot be read as "Huawei is now building a new DRAM factory." What resurfaced was speculation linking an existing project to Huawei, not the achievement of 140,000-wafer capacity.
To begin with, monthly wafer input capacity does not represent the volume of memory that can be shipped. DRAM output varies depending on the number of dies per wafer, defect density, and yield. Bit capacity per product also affects this. Even if 140,000 wafers per month is the designed ceiling, it does not necessarily mean that equipment has been installed, processes have stabilized, and good units that have passed customer qualification are being produced at the same scale.
Administrative Records Confirm Process Operations
SwaySure's official website states that the company was established in March 2022 and received investment from Shenzhen Major Industry Investment Group, which falls under the Shenzhen Municipal State-owned Assets Supervision and Administration Commission. Its business scope covers R&D, design, and production of memory chips. A 2024 recruitment document listed niche new-type memory for wearables, automotive electronics, and set-top boxes as its main products. Positions being recruited included engineers who integrate manufacturing processes, engineers who manage defects and reliability, and staff responsible for factory equipment.
The factory's progress becomes more concrete in Shenzhen municipal records. In September 2025, the Shenzhen Municipal Bureau of Industry and Information Technology placed SwaySure's "New-Type Memory Production Line Construction Project" at the top of that fiscal year's list of major industrial projects. While the name does not specifically mention DRAM or 28nm, it shows that public investment oversight of the memory production line is ongoing.
More direct is a notice from the Shenzhen Municipal Water Affairs Bureau. In May 2025, the bureau confirmed that at SwaySure's entire factory, production water is used for wet etching, polishing, and production cleaning. It is also used for equipment cooling, with wastewater pretreated by on-site facilities. The same processes were recorded in a May 2026 notice as well, with the exemption measures continuing through the end of May 2028. This is not a case of only a building existing—at minimum, equipment involved in wafer processes is operating and continuously consuming water.
However, the water affairs records do not allow us to infer the scale of mass production. Even R&D lines, trial production, or small-scale production for customer qualification require etching and cleaning. No administrative record states that 28nm DRAM is being processed at 140,000 wafers per month, that stable yields have been achieved, or that products have been shipped.
A Relationship That Ties the Supply Chain Together, Before Ownership
The relationship between Huawei and SwaySure has stronger evidence than a single social media post. The US Department of Commerce's Bureau of Industry and Security (BIS) added SwaySure to the Entity List in December 2024. BIS cited as its reason that the company poses a significant risk of contributing to Huawei's domestic production of advanced-node integrated circuits. What the rule indicates is an export control risk assessment—it does not prove investment or a manufacturing contract.
The Financial Times also reported in May 2025, based on satellite imagery and on-site reporting. Through interviews with sources, it reported that Huawei is the core entity operating three manufacturing sites in Guanlan, Shenzhen. Of these three sites, one is said to be operated by SwaySure. Meanwhile, Huawei denied to the newspaper any relationship with startups such as SwaySure.
| Question | What Can Be Confirmed from Public Information | What Cannot Yet Be Confirmed |
|---|---|---|
| Is SwaySure's factory operating? | Shenzhen municipality confirmed construction of the production line and water usage for wafer processes | Actual operation at 140,000 wafers/month, yield, and shipment volume |
| Is there a relationship with Huawei? | BIS recognized the risk of supporting Huawei, and FT reported it as a core part of the manufacturing network | Investment ratio, joint venture agreement, manufacturing directive authority |
| Is Huawei manufacturing its own DRAM? | Huawei announced its in-house HBM and integration with Ascend | The entity actually manufacturing the DRAM dies, adoption of SwaySure products |
Even putting these three points together, one cannot conclude that Huawei has become a legal owner and manufacturer of DRAM through SwaySure. What BIS indicated was a regulatory risk, and while FT reported an operational connection, Huawei has denied this. If we take the FT report as a premise, we can sketch a picture in which Huawei holds demand and chip design while closely coordinating with a separate legal entity responsible for manufacturing equipment and wafer processes. This is the article's hypothesis of functional vertical integration rather than legal ownership, and it cannot be confirmed until investment relationships or contracts are disclosed.
Three Barriers Between 28nm DRAM and HiZQ 2.0
Even if the reported 28nm DRAM line is operating, that alone does not mean HBM for AI accelerators can be produced. While process names cannot be simply compared across manufacturers, advanced HBM in 2026 has progressed to a generation using 10nm-class DRAM. The HBM4 that Samsung announced mass production of in February combines 6th-generation 10nm-class 1c DRAM with a 4nm logic base die.
The first barrier is the DRAM die itself. While gaining capacity and speed through fine memory cells, one must suppress leakage current and secure a high ratio of good dies that can be used for stacking. Because a single defective die can significantly damage the value of a stacked product, yields achieved with ordinary niche memory cannot be directly transferred to HBM.
The second is stacking and integration. HBM involves thinning multiple DRAM dies and connecting them vertically using through-silicon vias and similar technology. It further requires connecting a logic base die, interposer, and the Ascend chip itself, while maintaining signal quality and power supply and dissipating heat. Having front-end wafer processing capability and mass-producing usable HBM stacks are separate capabilities.
The third is customer qualification and sustained supply. In September 2025, Huawei announced "HiBL 1.0," a low-cost HBM for Ascend 950PR, and "HiZQ 2.0" for Ascend 950DT, as self-developed products. HiZQ 2.0 boasts 144GB of capacity and 4TB/s of memory access bandwidth, with the 950DT scheduled for launch in Q4 2026. However, Huawei has not disclosed the manufacturer or process generation of the DRAM dies. The stacking method and mass-production yield are also undisclosed. The term "self-developed" can encompass memory specifications, control, and package design, and does not by itself prove that Huawei has manufactured the front-end processes itself.
Watch Shippable Good Bits, Not Monthly Wafer Capacity
SwaySure's line holds value for Huawei even without directly connecting to HBM. In June 2026, Micron forecast that demand for DRAM and NAND would significantly exceed supply, with tightness driven by AI demand and structural supply constraints continuing beyond 2027. Huawei uses HBM and DDR in AI servers, and LPDDR in smartphones. Memory is also needed for telecommunications, automotive, and wearable devices. The niche memory that SwaySure is pursuing overlaps with this broader base.
The difference from mass-production DRAM makers also shows up in public information. CXMT, China's largest manufacturer, mass-produced 8Gb DDR4 in 2019 and currently discloses specifications up to 16Gb/24Gb DDR5 at up to 8000Mbps, and 12Gb/16Gb LPDDR5X at up to 10667Mbps. SwaySure's official website contains no product model numbers, speeds, or capacities, nor any record of mass production start dates or customer qualification achievements. This gap is not simply a difference in promotional volume—it is a difference in the materials available to externally judge mass production capability.
The figures to watch will shift from the planned monthly wafer count to the actual wafer input volume, yield rate, and number of shipped bits. Add to this product model numbers and customer qualifications, and if the entity supplying DRAM dies for HiBL 1.0 or HiZQ 2.0 is disclosed, the relationship between SwaySure and Huawei will shift from a "factory theory" to a verifiable in-house manufacturing network. Whether Huawei can be called a DRAM manufacturer will be something that can be judged at that point.