BUSINESS

Huawei Will Leverage Available Chip Tech in Bid for Self-Reliance

Published: Sep. 20, 2024 8:27 p.m. GMT+8

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Huawei Rotating Chairman Eric Xu speaks at Huawei Connect 2024 on Thursday. Photo: Huawei

Huawei Technologies Co. Ltd. will use available chipmaking technologies to secure long-term access to computing power which is crucial to the development of products powered by artificial intelligence (AI) as the Chinese telecom-equipment giant continues to reel from U.S. sanctions, said a top executive.

Eric Xu, Huawei’s rotating chairman, described Washington’s crippling campaign designed to limit Huawei’s ability to buy advanced semiconductors as presenting “both challenges and opportunities” for the company, which is striving to achieve self-reliance in computing power, according to a transcript of his keynote speech delivered at Huawei Connect 2024 on Thursday.

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Huawei plans to achieve self-reliance in computing power using available chipmaking technologies amidst long-term U.S. sanctions.
Huawei will innovate by integrating computing, storage, and network technologies and focus on architectural innovations to address current chip production limitations.
Due to U.S. restrictions, Huawei has shifted focus to domestic semiconductor partners and will launch the new Ascend 910C chip, increasing investment in its ecosystem.

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Who’s Who

Huawei Technologies Co. Ltd.: Huawei Technologies Co. Ltd. is striving for self-reliance in computing power amid U.S. sanctions. The company focuses on innovating through computing, storage, and network technologies. Huawei is developing solutions with available chipmaking technologies and aiming to build an independent semiconductor ecosystem. The release of the Kirin 9000s SoC and the upcoming Ascend 910C chip highlight its efforts. Huawei aims to become a major global computing power supplier within five years.

Taiwan Semiconductor Manufacturing Co. Ltd.: Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) is mentioned as a contract manufacturer that produced custom chips for Huawei. The U.S. Department of Commerce's 2020 revision targeted TSMC, requiring foreign chipmakers using American chipmaking equipment to get government approval before shipping to Huawei. This affected TSMC's ability to supply Huawei with advanced semiconductors.

MediaTek Inc.: MediaTek Inc. is a Taiwan-based third-party chip designer that Huawei previously relied upon for semiconductor solutions. However, due to expanded U.S. restrictions in 2020, Huawei's ability to purchase off-the-shelf semiconductors from MediaTek was limited, as these chipmakers also rely on U.S. chipmaking technology.

Dalian Ronghe Enterprise Management Consulting Co. Ltd.: Dalian Ronghe Enterprise Management Consulting Co. Ltd. is led by CEO Wu Zihao, who mentioned that the Ascend 910C chip, expected to be launched by Huawei in the second half of the year, features improved interconnect technology, allowing multiple chips to be combined to enhance overall computing power.

Baidu Inc.: Baidu Inc. is a domestic tech firm in China that has started purchasing chips from Huawei to power its products. This move is part of a broader trend among Chinese companies to prioritize self-sufficiency in response to U.S. sanctions on Huawei, even if it means compromising on chip performance and user experience.

Iflytek Co. Ltd.: Iflytek Co. Ltd. is a domestic tech firm mentioned in the article as one of the companies purchasing chips from Huawei to power its products. These companies prioritize self-sufficiency over chip performance and user experience.

Meituan: Meituan is a domestic tech firm in China that has begun purchasing chips from Huawei to power its products. This indicates a strategic move towards self-sufficiency in response to U.S. sanctions limiting advanced semiconductor access. Most of the companies using Huawei chips, including Meituan, prioritize self-sufficiency over chip performance and user experience.

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What Happened When

May 2019：: The U.S. Department of Commerce placed Huawei on its 'Entity List,' blocking access to advanced chips from U.S.-based firms unless they obtain a special government license.

May 2020：: The U.S. Department of Commerce required foreign chipmakers that use American chipmaking equipment to get government approval before shipping to Huawei.

August 2020：: The U.S. Department of Commerce expanded the ban to any firm in the world that relies on U.S. chipmaking technology.

August 2023：: Huawei released a new flagship smartphone powered by its in-house designed Kirin 9000s system-on-a-chip (SoC). This marked a significant step in Huawei's effort to develop a semiconductor manufacturing ecosystem independent of U.S. technology.

By the second half of 2024：: Huawei is expected to launch the Ascend 910C chip, which would feature improved interconnect technology.

Thursday, September 19, 2024：: Eric Xu, Huawei’s rotating chairman, delivered a keynote speech at Huawei Connect 2024, discussing the company's strategy to achieve self-reliance in computing power despite U.S. sanctions.

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