Huawei has been at the forefront of smartphone innovation, showcasing remarkable progress, especially with its recent smartphones equipped with an in-house 7nm 5G processor. However, the company's aspirations transcend these technological achievements, as it endeavors to surmount the hurdles posed by the US import ban. A recent investigation by Bloomberg unveils the pivotal role played by a Shenzhen city government investment fund established in 2019, supporting Huawei's initiative to create "a self-sufficient chip network."
This groundbreaking network holds the potential to provide Huawei access to critical enterprises, particularly the three subsidiaries associated with a company named SiCarrier, instrumental in the development of lithography machines. The importance of lithography, especially the advanced extreme ultraviolet variant, cannot be overstated in various technological applications. However, due to restrictions imposed by the US, Netherlands, and Japan, the importation of such technology into China has become a formidable challenge. In response, Huawei has strategically transferred approximately "about a dozen patents to SiCarrier" and facilitated elite engineers from SiCarrier to collaborate directly on Huawei's sites, illustrating a close and symbiotic relationship between the two entities.
Reports from Bloomberg assert that Huawei has enlisted former employees of the Dutch lithography specialist ASML to contribute to this groundbreaking initiative. The result of these collaborative efforts is reportedly the 7nm HiSilicon Kirin 9000S processor, locally manufactured by SMIC (Semiconductor Manufacturing International Corporation). While this processor is acknowledged to be about five years behind leading competition, such as Apple Silicon's 3nm process, it still represents a significant advancement, particularly when considering the eight-year gap intended by the Biden administration's export ban.
The HiSilicon Kirin 9000S processor is prominently featured in Huawei's Mate 60, Mate 60 Pro, Mate 60 Pro+, and Mate X5 foldable devices, alongside other Chinese components like display panels (BOE), camera modules (OFILM), and batteries (Sunwoda). Huawei's strategic move to establish a network of local enterprises positions the company to lessen its dependence on imported components. This strategic positioning could potentially propel Huawei to become a central player in the Chinese chip industry, especially in the era of electric vehicles and artificial intelligence, where the demand for chips is burgeoning.
Despite the visible progress, Huawei vehemently denies receiving government assistance in achieving this ambitious goal. With China making substantial investments in its chip industry and Huawei demonstrating clear advancements, the US government faces escalating challenges in maintaining restrictions on Huawei's technological endeavors.