- Company faces significant challenges in overcoming technological constraints and maintaining competitiveness in the global semiconductor landscape
- Technological gap between Huawei and its competitors continues to widen, particularly as TSMC and Samsung Electronics prepare to commence mass production of 2-nanometre chips.
Huawei Technologies has recently unveiled its latest flagship smartphone, the Mate 70 Pro Plus, which continues to utilise a chip architecture that has raised concerns among US officials regarding China’s technological advancements.
The device operates on the Kirin 9020 processor, which is built using the same 7-nanometre technology as its predecessor, the Mate 60 Pro. This continuity indicates a stagnation in Huawei’s chip development, as the company had previously been rumoured to transition to a more advanced 5-nanometre process this year.
Such a shift would have signified a potential breakthrough in China’s semiconductor capabilities, challenging U.S. efforts to curb technological progress in the region.
The analysis conducted by TechInsights reveals that while the Kirin 9020 incorporates a modified circuit design aimed at enhancing performance and efficiency, it remains significantly behind industry leaders like Taiwan Semiconductor Manufacturing Co. (TSMC), which introduced its first 7-nanometer chip in 2018.
Despite Huawei’s innovative strides, the company is projected to remain constrained by its reliance on 7-nanometre technology until at least 2026, primarily due to restrictions on acquiring advanced manufacturing equipment from companies such as ASML Holding NV.
Huawei’s predicament is further compounded by its partnership with the Semiconductor Manufacturing International Corp (SMIC), which faces challenges related to yield and reliability in its current production processes.
Huawei excels in specific areas
Although the Mate 70 Pro has demonstrated satisfactory performance for smartphone applications, the technological gap between Huawei and its competitors continues to widen, particularly as TSMC and Samsung Electronics prepare to commence mass production of 2-nanometre chips.
Despite these hurdles, Huawei retains substantial expertise in specific areas, such as camera technology, and is actively developing its proprietary operating system, HarmonyOS Next.
The company has successfully re-established its presence in China’s premium smartphone market, as evidenced by the positive reception of the Mate 60 Pro.
However, the urgency for advanced semiconductor technology is particularly pronounced in the realm of artificial intelligence, where Huawei aims to position itself as a formidable competitor to industry giants like Nvidia.