Zhengfei attended the ICPC (International Collegiate Programming Content) coding competition for university students yesterday. He talked with students about the company, technology, future goals, and various other relevant topics.

During an interrogation with students, Ren said the U.S. has openness and inclusivity in its tech community that benefits it in every field including the chipmaking sector.

Ren believes that Huawei can learn from the receptive culture of the US as it makes the country advance in science and technology. The founder adds the US ban led Huawei to build its tech as it cannot access advanced tools from foreign markets.

“The US has set an example for all countries and companies worldwide on being open. If a country is closed off, it will fall behind.” – says Ren Zhengfei.

US vs Huawei

US sanctions hit Huawei in 2019 due to security concerns. As of now, the foreign authorities tightened the trade controls to continue blocking Huawei from accessing advanced chipmaking tools or equipment.

However, these restrictions have also shown some positive results. Due to the US ban, Huawei started marching on the self-sufficiency path and making the country self-dependent rather than relying on foreign goods, AI chips, and software.

“American technologies and tools are very good… [but] Huawei cannot use them; we had no choice but to create our tools. Open innovation and utilizing the advanced achievements of others is the true way forward for an enterprise.” – Ren Zhengfei.

The executive also believes that AI is becoming unstoppable. It is creating turning points for many firms. If Huawei uses AI in the best ways, it could achieve more success in the time ahead. However, the company needs to put more effort into being at the top in the AI race.

Huawei had no choice but to build its own tech following the US ban: Founder (Image Credits: Huawei/X)

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Maxis Communications is one of the oldest and largest telecom operators in Malaysia. It provides communication products, applications, and value-added services to general customers, large enterprises, and small/medium business groups.

According to the report, Malaysia requires a stable, faster, and easy-to-use network connection for its enterprises. Since Huawei has well-expanded its network tech in Southeast Asia, Malaysia is seeing the OEM as a major solution for its 5G network.

Inputs reveal that Huawei could team up with Maxis Communications to build the second 5G network in Malaysia despite U.S. concerns about security.

One of the foreign representatives mentioned that if Maxis gets the chance to build Malaysia’s second 5G network, then it will choose Huawei over any other partner.

The anonymous person also states that Huawei’s indulgence in the second network may pull away customers from the existing network techs and reduce the revenue required for the current network solutions’ growth and development.

“If it goes to Maxis, as some people say, it is likely that Huawei will benefit from it as their infrastructure partner. In the end, it could look like Malaysia is helping Chinese interests” – said the foreign representative.

Malaysia aims to uplift its tech section with top-tier chip investments and digital growth. The country is seeing a second 5G network as the need for ultra-high-speed mobile broadband. Malaysia Prime Minister Anwar Ibrahim said:

“While we get the best from the West, we also should benefit the best from the East.”

However, some U.S. experts believe that a direct connection between Malaysia with Huawei could affect the country’s relations with Western chip investors who see Chinese firms as a huge risk to security.

A cooperation agreement between Huawei and Maxis Communications still requires confirmation. The inputs reveal that a big announcement on this matter is expected very soon.

Huawei to help Malaysia boost 5G network tech amid U.S. ban: Report (Image Credits: Huawei)

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LightReading learned that the US ban on Huawei 5G network equipment did not affect the company much. Despite huge struggles, the company’s sales in the 5G products department increased by a tenth last year with a net profit hike of 145%.

Notably, these rates are ‘far ahead’ of its main rivals like Ericsson and Nokia. A major credit goes to Huawei’s new strategies in the network solutions field. The company diversified into new businesses and remained highly competitive in the network arena.

Huawei’s MIMO consists of top-of-the-range antennas and is one of the most advanced 5G techs. It is a “generation ahead” of Ericsson’s best products, as per the report.

The MIMO (multiple-input multiple-output) appears as lighter equipment that reduces pressure on masts and can easily be transferred to different places. Seeing such advanced 5G network technologies, an executive of a foreign company said:

“US sanctions have not had a noticeable impact on Huawei’s technology competitiveness.”

Another source of the latest report cites that Huawei seemed using TSMC-stocked chips for its network operators. But that couldn’t be a long-term thing. The company has already proved that it can use an advanced 7nm chip for its base stations.

Huawei 5G equipment didn’t face major impact of US ban, says report (Image Credits: Huawei)

AI and smartphone chips seem an area where Huawei has to make more efforts. But other than that, the company already appears self-reliant in many tech fields.

The US authorities tried to pull off Huawei and finish its existence in the 5G market. It thought of treating Huawei just like ZTE and other Chinese tech vendors.

ZTE faced critical conditions after the U.S. sanctions. It nearly went out of business a few years back. However, the case is quite different and positive on Huawei’s side.

The Chinese tech giant struggled initially following the U.S. restrictions on its 5G network equipment. The “rip and replace” program is still in action across various countries and regions. Yet, the company is now doing great in the network section.

On the other hand, foreign telecoms are searching for alternatives to Huawei’s network equipment. Germany, for instance, has given a lot of time (till 2029) to its telecom operators to replace Huawei radio access network and work on their network management.

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On September 20, Huawei hosted the Connect 2024 conference to shed light on digital productivity. During the event, the Rotating Chairman of the company Xu Zhijun also made a few points about the chip section, U.S. ban, and AI power.

Shedding light on the chip tech importance, Xu said AI sustainability relies on computing power. Whereas, the computing power efficiency depends on a strong chipset technology.

Directly or indirectly, a powerful chip architecture is quite important for the AI and computing power progress. However, the reality is that China lags in the chipmaking field following the U.S. sanctions. Yet, Huawei has a good response to it.

Xu says that the U.S. won’t remove its sanctions on China and Huawei for a long time due to so-called security concerns. This would surely impact the chip manufacturing tech in the region as it is also bound by the tough restrictions.

But Huawei sees these challenges as both possibilities and opportunities. The U.S. ban is helping Huawei to slowly become self-reliant in the chip and AI tech.

Huawei hit by the U.S. sanctions in 2019. The ban restricted the OEM from accessing advanced chipmaking tools in the foreign market. After a struggle of four years, the company reintroduced its self-developed chip Kirin 9000s with Mate 60 Pro.

And the rest of the achievements are in front of us!

Xu Zhjiun notes that advanced chip manufacturing could be limited for now. Although Huawei is making efforts to build more efficient chips with better performance.

Huawei aims to make structural changes and create an independent and reliable computing industry, using its key component – innovation. This will ultimately make the company replace foreign components with self-developed parts for its AI products.

If not immediately, Huawei will definitely achieve advancements in both chipset and AI fields. The company has embarked on the path of “self-reliance” and may soon accomplish its goal of breakthroughs in the chip and AI sector.

Huawei Rotating Chairman at the Connect 2024 event (Image Credits: Huawei)

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SMEE (Shanghai Micro Electronics Equipment) filed a new EUV patent. It is entitled “extreme ultraviolet [EUV] radiation generators and lithography equipment”.

The patent was issued in March 2023 and is now being examined by the Chinese Intellectual Property Administration. However, it may soon receive approval.

EUV or the Extreme UltraViolet Lithography machines help to make high-end processors with the use of light. This ray has a wavelength of 13.5nm which is 14 times less than DUV (193nm). EUV is required to build chips smaller than 7nm.

SMEE Company:

Among several Chinese companies, SMEE also comes in U.S. blacklisted firms. The company was unable to use foreign goods or chipmaking tools following the sanctions. However, the new patent has appeared as a ray of hope amid the chip war.

The patent details are currently unknown. But it indicates that SMEE is slowly taking steps towards new chipmaking tools. China is dependent on DUV (Deep UltraViolet) lithography machines for making its devices and smart product processors.

However, it seems SMEE is progressing in the EUV lithography after years of effort and dedication and will be able to produce processors at the 28nm level or below.

New EUV patent hints Huawei could progress in chip field despite US ban (Image Credits: Huawei)

It’s good news since the U.S. has restricted many foreign suppliers from shipping their advanced chipset-making tools to China. One of them is ASML which still accounts for a big share of the Chinese market for lithography machines.

But now the Netherlands is planning to hold back ASML from supplying its chipmaking tools in China (read the complete report HERE). At such a stage, the new EUV patent news has appeared as a boon in the Chinese chipmaking progress.

U.S. may block ASML to supply chipmaking tools in China (Image Credits: Reuters)

How it will impact Huawei?

The new patent will help Huawei to progress in the chip-making processes. Currently, the firm builds its Kirin chips in the SMIC foundry using the stocked DUV equipment. It is also seeking ways to improve its 7nm chip before proceeding with new techs.

With advanced chip-making equipment, Huawei devices may get access to high-end chips and AI processors. We have to wait for more details on this matter for a clear view.

[Source – SCMP]

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China’s General Administration of Customs released a new report this week. It says that the native region has broken all the records in the past three years (2021). Chinese companies have imported chipmaking tools worth $26 billion this year.

The report reveals that China is stocking up chipmaking machinery in advance. It’s eventually a backup in case the U.S. authorities impose further restrictions on Chinese firms for buying high-end technologies to develop powerful chipsets.

Also, the ultimate move has arrived when the American, Japanese, as well as Dutch governments are looking to push off more limitations on the Chinese firms.

Chinese semiconductor components (Image Credits: Huawei)

Inputs reveal that the Chinese companies bought chipmaking equipment from Tokyo Electron Ltd., ASML Holding NV, and Applied Materials Inc. last year.

During the gap of seven to eight months, these companies also purchased inferior equipment due to increased trade export controls. Notably, a high importing from the Dutch (ASML) helped the country to increase its sales by $2 billion in July 2024.

ASML Tools

ASML chipmaking tools shipment to China reached 21% in Q2 2024. For now, ASML is the only supplier of advanced chipmaking machines like lithography equipment. Chinese companies have purchased most of the tools from ASML. These firms aim to make more efficient processors using old and unrepaired systems.

The latest report implies that China has achieved 15% wafer production per month this year. With constant efforts, the Chinese firms could meet the goal of 10.1 million wafers per month by 2025. Perhaps U.S. challenges won’t stop China from pacing ahead.

Chinese firms purchased chipmaking tools worth $26 billion amid U.S. ban (Image Credits: ASML)

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The Chairman said that the company has dealt with incredibly difficult days. After Huawei was blacklisted by the U.S. government for being a “security risk”, it faced many challenges in both the native regions as well as the global smartphone market.

Regardless a global 5G leader, the company has been even banned from using 5G chips for its own handsets. The Huawei smartphone business slowed down following export trade restrictions on chipmaking tools and other advanced equipment.

Yu further said that there was a time when the company sold only 20 million units per year. It was so as Huawei didn’t have better techs or chip tools back in 2022.

“My team wasn’t able to start operations. As the global leader in 5G technology, we didn’t even have 5G phones ourselves. Our days were incredibly difficult” – says Yu Chengdong.

In 2019, the Chinese tech giant sold around 240 million units of smartphones globally. However, that same year, the U.S. imposed sanctions on the company, which led to a drop in its smartphone business. The ban’s impact on the company is still visible.

Chip war between the U.S. and China (Image Credits: Reuters)

Although Huawei Chairman expects its business to recover amid the U.S. ban. The company is constantly making efforts to rejuvenate its smartphone business in both China and global markets. In this case, Mate 60 Pro appears as a turning point.

Huawei introduced Mate 60 Pro with Kirin 5G chipset last year. Since then, the company didn’t stop new Kirin chips production. Pura 70 Ultra is another example that runs on Kirin 9010 chip and this trend will probably continue with Mate 70 flagship.

Yu Chengdong also said that Huawei phones and other products are contributing to China’s growth. Consumers purchasing these devices also play a role in lifting China’s electronics supply chain and reducing the country’s dependency on foreign goods.

Read More:

• Huawei Kirin chips significantly contribute to China’s growth: Yu Chengdong

Huawei could raise the smartphone shipment bar in China to 50 million units this year, as per analysts. To do so, the company is trying its best in every way. Whether it’s HarmonyOS software capabilities or the new R&D Center establishment in Shanghai.

It would be worth seeing how Huawei takes on new achievements amid U.S. restrictions and several trade challenges.

Huawei Chairman expects business to recover amid U.S. ban (Image Credits: Weibo)

[Source – SCMP]

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Dell’Oro Group has recently published the chart of the global telecom equipment market 2023 where Huawei is sitting at the top. The list also counts Nokia, Ericsson, ZTE, Cisco, Samsung, and some other telecom operators across the world.

The group has considered five major aspects to figure out the ranking among telecom vendors. Eventually, this includes broadband access, microwave, optical transport, mobile core network, RAN, and service provider router and switch.

Looking into the details, Huawei has scored 30% of the global equipment market share. It shows a 2% increase compared to the previous year. The second rank goes to Nokia with a 15% revenue share. Besides, Ericsson has dropped from 14 to 13%.

Samsung is also seeing a decline in the worldwide telecom market with a 2% market share. The report further reveals that the 2023 global telecom ground has faced a decline of 5% YoY from the second half of the last year. Yet, some tech vendors performed well in this segment.

2023 global telecom equipment report (Credits: MyDrivers)

Dell’Oro states that region-wise, North America has fallen by 20% in equipment revenue. A root cause behind this decline is weak activity in RAN and broadband access. Although, the positive development in Asia leads to stable growth in the global telecom market.

The analyst of Dell’Oro Group – Stefan Pongratz says that even though the U.S. authorities constantly limited Huawei’s strength and use of its latest chips in the market, the company came out with flying colors. No doubt, it will continue to polish its capabilities in the future as well.

2023 global telecom market (Credits: MyDrivers)

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According to the details, China consists of around 130 AI large language models. These products help to identify, understand, and create new content by using the set of data. Besides, they bear effective capabilities and components that are comparable to global AI products.

Even though the U.S. authorities continued to cut off Chinese companies from high-quality AI tech equipment and tools via sanctions, the native region made notable progress in the generative AI field. China continues to take new steps in artificial intelligence.

Firms like Tencent, Baidu, and Alibaba are constantly introducing iconic functions for their AI models. Baidu says that its Ernie 4.0 can give a tough hit to OpenAI GPT-4. Whereas, Alibaba Tongyi Qianwen 2.0 has ‘hundreds of billions’ of parameters that make it the world’s most powerful AI model.

On the other hand, the U.S. sanctions brought creative opportunities for Chinese firms. Tech giants like Huawei have started building their own AI chipsets that are slightly less powerful but have efficient capabilities.

And let’s not forget that Huawei has unveiled the self-developed HarmonyOS NEXT which uses original components rather than relying upon the old Linux and Android elements. Yet, both Chinese hardware and software lag at some points compared to foreign tech.

For instance, Huawei AI chipsets can compete with Nvidia’s processor on computing power, but it will lag behind when it comes to performance. At present, Chinese companies mainly depend on the reserved AI chips that were in stock before the U.S. ban.

Eventually, Chinese companies will require high-end technologies and better tools to keep up in the AI race. However, the increasing U.S.-China tensions create a huge bizarre on this matter. It would be worth seeing how China tackles the AI competition in the time ahead.

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In recent times, numerous headlines depicted that foreign firms are replacing Chinese technologies from the core in favor of bans and trade restrictions.

One such example is the BT Group which has been working hastily on the removal of Huawei equipment from its core network. However, tech analysts are examining this aspect from all sides and believe that it may cost the U.S. a major amount.

On Thursday, the senior research analyst at the Centre for Security and Emerging Technology of Georgetown University – Jack Corrigan attended an interview in Washington. Among several topics, the analyst shared his views on the U.S.-China tensions.

Jack cited that there aren’t many alternatives to Chinese IT systems at affordable prices. Even if the U.S. focuses on avoiding national security threats, the complete abolishment of Chinese IT equipment from the region could cost unlimited dollars to the authorities.

“Eliminating all designated Chinese technology and services from every US network would be prohibitively expensive, if not impossible.”

In 2020, the Federal Communications Commission began the ‘rip and replace’ program in the U.S. asking the local telecom providers to remove Chinese IT equipment. It further offered a compensation of $1.9 billion. Although, the overall cost was far more and dealt with a $3.1 billion lack.

U.S.-China War Continues…

U.S. regulators have always seen the Chinese firm as a harmful threat to their security and privacy. Despite many China-based companies claiming that their products and services are safe, the American authorities continued to increase restrictions.

Eventually, Washington has wiped out telecom facilities from Huawei and ZTE, accusing them of using suspicious techs that can transfer U.S. data to China. Though this process has only increased the burden on telecom providers to begin everything from scratch.

Concluding the topic, Jack said that if the U.S. authorities continue to extend this program beyond Huawei and ZTE, then it will only result in the growth of the funding gap. Perhaps, it is important to impose such bans only at the sites, networks, or techs that violate national security laws.

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