The Chinese Huawei wants to build a chip factory in Shanghai without using American technology, reports the British business newspaper Financial Times.
The company is looking for a strategy to get out of the pressure of US sanctions.
Beijing has set a path to become more economically self-sufficient. Partly due to the US trade embargo against Huawei, the Chinese can no longer trust that they can purchase specific technology elsewhere.
For example, Huawei uses both American software and other foreign technology to manufacture its Kirin chips, which are manufactured by the Taiwanese TSMC.
The technology giant has now been forced to stop the production of this smartphone processor, which is a massive setback for the company.
Washington suspects Huawei of spying for the Chinese government, which the company denies.
Several European countries were warned by the US in the past not to engage with Chinese companies for the rollout of 5G.