Huawei tempers chip expectations

Huawei founder Ren Zhengfei has downplayed the company's chipmaking prowess, stating they still lag behind the US despite recent advancements. This comes amid ongoing trade discussions between Washington and Beijing, where technology restrictions are a key point of contention. Zhengfei acknowledged that Huawei's single-chip technology trails the US, even though Huawei is finding workarounds. He also mentioned that a significant portion of Huawei's research budget is dedicated to theoretical research, with the remainder focused on product development.

The US has imposed export controls, limiting Huawei's access to advanced chipmaking technologies. These restrictions have hampered Huawei's ability to compete with industry leaders like NVIDIA, pushing them back several generations in AI chip technology. Despite these challenges, Huawei has managed to regain market share in smartphones and is making strides in AI and EV software, partly through techniques like chip packaging and stacking. China has also been pushing for self-sufficiency in chip technology, but still relies on foreign technology for manufacturing and design.