In light of the US chip ban, Huawei showed great ingenuity by unveiling a range of 5G chips, proving that the company is capable of continuing to produce smartphones equipped with this technology.
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Less than five years after U.S. sanctions nearly crippled Huawei, the Chinese giant is now Beijing’s main weapon in a semiconductor battle that will shape the global economy for decades to come. While Huawei says it is not receiving government aid, reports suggest a stronger alliance between the tech giant and an investment fund set up by the Shenzhen city government in 2019.
This fund has been instrumental in supporting Huawei in its pursuit of a “self-sufficient chip network.” This strategic partnership is essential for This gives Huawei access to companies that specialize in lithography machines, important equipment for making high-end chips.
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Huawei is now able to produce 5G smartphones
Because of sanctions, Chinese companies typically face obstacles to importing lithography machines, which are often based on U.S. patents. To get around this problem, Huawei is said to have recruited former employees of ASML, a Dutch company known for its extreme lithography machines. It is thanks to them above all that Huawei has managed to produce its latest 7nm processor HiSilicon Kirin 9000S, which we find in the latest Mate 60 Pro.
Huawei’s wish Creating a self-sustaining network of chips is part of China’s broader initiative to invest billions of dollars in the local chip industry. By fostering a strong local ecosystem, Huawei hopes to reduce costs and regain its position in the global smartphone market.
If cooperation with the state investment fund represents significant progress, Huawei would continue to refuse any direct state aid. Currently, Huawei is still a long way from being able to compete with American technologies. According to ASML, the Dutch lithography machine manufacturer, DUV machines require 34 lithography steps to reach 7nm, compared to just nine steps for EUV. The additional production steps result higher production costs and lower yields.
Originally posted 2023-12-02 08:38:11.