Huawei Invests in China-based VCSEL Maker Vertilite to Secure Its Supply Chain

Huawei’s subsidiary Hubble recently invested in Vertilite, a semiconductor startup focusing on VCSEL development. The amount of the investment was not revealed.

Vertilite has become the VCSEL supply of Huawei after the U.S. banned Lumentum shipment to the China tech giant in May, 2019. Huawei thus turned to Vertilite for the 3D sensing component and further pushed the de-Americanization plan.

Hubble is an investment company of Huawei and has invested different China-based semiconductor companies to help strengthening their technology and fortifying its supply chain. Vertilite is the 10th company invested by Hubble.

The U.S. keep adding new sanctions on China’s Huawei as political and economic conflicts between the two countries continue to escalate. Huawei, on the other hand, is trying to exclude U.S.-related companies from its supply chain and looking for alternative suppliers. By investing in domestic Chinese companies and accelerating their technology development, Huawei aims to secure the business and survive from the U.S. sanctions.