According to media reports, Huawei is planning to build a 400-person chip development plant outside Cambridge, the UK’s silicon chip industry center, which is only 15 minutes from ARM’s headquarters.

Huawei plans to locate the R&D plant in Sawston Village, about 7 miles from Cambridge, to develop chips for broadband networks. Henk Koopmans, CEO of Huawei Technology R&D UK, said he negotiated a purchase of 550 acres last year for £37.5 million. The plant will be operational in 2021 and will create up to 400 jobs.

Currently, Huawei employs thousands of people in the UK, including about 120 in Cambridge. In February last year, the company announced that it would invest 3 billion pounds in the UK in the next five years. Huawei’s decision to manufacture chips in Cambridge will create a strong competitive edge for semiconductor talent in the region. Huawei also said that it may eventually develop artificial intelligence software there.