As reported by The Sunday Times newspaper, the Chinese telecoms giant is looking at a spot in the large village of Sawston village, just seven miles outside of Cambridge city centre.
The facility will mainly be used for creating chips for use in broadband and the South Cambridgeshire District Council will be approving the request.
The news of a Huawei factory potentially coming to the UK comes after Tesla hinted they could be set to build a factory on British soil.
The electric vehicle and clean energy company previously discussed building a Tesla Gigafactory in the UK last year, but CEO Elon Musk passed it over because of the country's decision to leave the European Union.
At the time, Musk said uncertainty around the decision make it "too risky" and eventually settled on building the factory in Berlin, Germany.
However, a new report last month, suggested a different factory could still be built in the UK.
The Department for International Trade (DIT) confirmed that it was scouting sites for EV research, development, and manufacturing in the UK, but didn't divulged any industry names.
In a statement, they said: "The government is working with industry to help make the UK the location of choice to develop world-class electric vehicle technologies. DIT is working closely with partners to scope out sites for new investment into electric vehicle research, development, and manufacturing across the UK."
According to Property Week, Tesla are looking to find a four million-square-foot site for the factory, where they want to build an "electric vehicle (EV) research, development, and manufacturing plant".
The report suggests that Somerset's 650-acre Gravity industrial park is being considered as a possible location.
Last month, Tesla applied for a license to become a UK energy provider.