Huawei has been making notable advancements with its recent smartphones, notably the inclusion of its in-house 7nm 5G processor. However, a new Bloomberg report suggests that Huawei has been working on an even more significant project to circumvent the US import ban.
The tech giant, assisted by a Shenzhen city government investment fund, is reportedly building a self-reliant chip network.
This would grant Huawei access to key enterprises vital for developing lithography machines. Usually, these would need to be imported into China but are currently restricted due to US, Netherlands and Japan sanctions. Signs of the companies working closely are apparent, with Huawei transferring patents to SiCarrier and allowing their engineers to work on its sites.
Bloomberg asserts that Huawei has enlisted several ex-employees of Dutch lithography specialist, ASML, for the initiative. The result reportedly is the local fabrication of the 7nm HiSilicon Kirin 9000S processor by SMIC, which is allegedly about five years behind leading competition such as Apple Silicon’s 3nm process.
This, however, is an improvement from the eight-year gap expected due to the Biden administration’s export ban.
Huawei’s smartphones, including the Mate 60 series and Mate X5, feature this HiSilicon chip and other local components. By developing a network of local enterprises, Huawei could become less dependent on imported components and potentially lead the Chinese chip industry, particularly crucial in the age of electric vehicles and AI requiring more chips than ever.
However, Huawei has reportedly denied any government assistance in achieving this.
With Huawei’s evident progress and China’s extensive investment in its chip industry, the US might have to brace itself for increased competition.
