Since the shadow of the US sanctions fell upon Huawei in 2020 due to its suspected ties to the People’s Liberation Army, locking away the gates to cutting-edge American chip technology, the Chinese titan has embraced a shroud of mystery.
The sanctions made it so that only those with special permission could produce the chips designed by Huawei. As a result, Huawei faced difficulties in obtaining new chips for the development of more advanced smartphones.
Largely cut off from global semiconductor supply chains, in an ironic twist, the Chinese government is turning to Huawei, the company that Washington sought to dismantle, to spearhead the nation's quest for semiconductor self-reliance, reports Bloomberg.
Shaping China's semiconductor landscape
Huawei is quietly supporting smaller companies in the chip supply chain, often undisclosed due to the U.S. sanctions. The Chinese government is heavily backing Huawei, with a Shenzhen fund aiding in building a self-reliant chip network alongside a reported $30 billion state-sponsored effort for chip fabrication facilities.
But Huawei has denied the claim that it has Chinese government support, saying the news is speculative.
The Shenzhen city government fund involves key partnerships, including with SiCarrier for lithography machines, addressing restrictions due to U.S., Netherlands, and Japan sanctions.
Huawei has reportedly transferred patents and collaborated closely with SiCarrier, even hiring former employees of Dutch specialist ASML. The outcome is the 7nm HiSilicon Kirin 9000s chip manufactured by SMIC, trailing about five years behind the top competition.
Interesting Engineering reported in September that Huawei's Mate 60 Pro launch caused a stir as it showcased China's semiconductor capabilities, raising questions about its role in the US-China tech conflict. Specifically, the focal point of scrutiny lay on Huawei’s Kirin 9000s chip used in Mate 60 Pro.
Despite US export controls aiming for an eight-year lag, Huawei's device business is thriving, and Mate 60 Pro sales are predicted to reach 40-60 million units next year, according to the report.
Chris Miller, author of 'Chip War: The Fight for the World’s Most Critical Technology,' told Bloomberg, “More government subsidies will make it even harder for Huawei to portray itself as independent. But subsidies will also let Huawei sell products at lower prices. In many emerging markets, this will probably enable Huawei to win market share.”
The move towards self-sufficiency could position Huawei as a significant player in China's chip industry, crucial in the era of electric vehicles and AI.
Originally published on Interesting Engineering : Original article