Huaweis 5G Smartphone Comeback, With Advanced Chip Wrapped In Secrecy, Releases Chokehold Of US Sanctions On China Tech

But it was the company that unveiled new 5G phones equipped with new central processing units (CPUs), which Chinese testing site AnTuTu first identified as the Kirin 9000, developed by Huawei's chip design division. HiSilicon – This has led to intense speculation about exactly where and how the chip was manufactured. US trade sanctions .

Both Huawei and SMIC are tight-lipped about the mainland-made system-on-chip (SoC) used in the new Mate 60 Pro series. But this did not prevent the spread of strong patriotic enthusiasm among the Chinese people. Social networks , where netizens praise the new 5G smartphones and their improved processor A symbol of China's victory in resisting harsh US sanctions .

“Huawei is the only company that has survived and thrived under US sanctions!” “This convinces the world of China's technological power,” wrote influential online user Dafengbindian in a popular post on the Chinese microblogging site. Weibo, which received more than 2,700 likes.

At the end of Huawei Some netizens said the launch of new products on Monday brought them to tears. One of the top-voted comments on Weibo noted: “It is very difficult for China to build a world-class technology company [like Huawei].”

Huawei's return to the 5G smartphone market and controversy over its Chinese-made processor reflect the company's efforts to expand its business after years of fighting over US trade sanctions.

The return of 5G marks another big PR win for the Shenzhen-based company, two years after Meng. He was hailed as a hero in China . He has been under house arrest in Canada for almost three years as he fights extradition to the United States in connection with bank fraud. Meng's liberation was hailed as a victory over US hegemony on the mainland.

“The launch of the Huawei Mate 60 Pro, based on a China-made 7nm SoC, has generated strong interest in the product among Chinese consumers, with more than 2 million units sold as of August 31,” Jeffries said. Edison Lee wrote in a research note Monday.

There is also a new foldable Mate X5 on offer, based on the same processor as the Huawei Mate 60 Pro series, according to Lee.

"Huawei's return to the 5G smartphone market may not come as a complete surprise to investors, but the market excitement is likely related to it," Li said. However, he said investors "want to know why China is making SOCs." How high is the power and which supply chain participants does Huawei use for the Mate 60 Pro series?

There have also been many questions about how Huawei's return to the high-end segment will affect sales. New Apple Lee added that the iPhone 15 series and other Android flagship models, as well as the Mate 60 Pro, will bring life to the depressed smartphone industry.

Apple's iPhone 15 causes long queues in China despite Huawei's return

Canadian semiconductor research firm TechInsights named SMIC as the maker of the Kirin 9000s processor in a recent Mate 60 Pro leak, sparking rumors that the chipmaker is secretly helping Huawei avoid oppressive US technology sanctions.

“The complexity of this achievement demonstrates the strength of the country's chip manufacturing capabilities,” said Dan Hutcheson, vice president of TechInsights.

If approved, production of this 7nm chip would be a major breach of sanctions imposed by the United States last October, which would have limited China's logic chip production to 14nm.

SMIC is in the spotlight for the 'game-changing' 5G chip in the new Huawei smartphone

Minataki Mitchell Kasio, managing director of Tokyo-based electronics research firm Fomalhaut Techno Solutions, told The Post in an email interview that he believes the Kirin 9000 processors are based on SMIC phones' 14nm process. He noted that some special technologies have been added to bring the chip's performance closer to that of a 7nm processor.

In contrast, Jeffries Lee suggested earlier this month that SMIC was not directly involved in the production of HiSilicon's Kirin 9000 processor.

“Although the Kirin 9000 has a similar structure to other SMIC chips, it is possible that it is made by Huawei,” Li said. “We believe it is highly likely that Huawei will acquire SMIC technology and hardware to create the Kirin 9000 processor for development.”

An industry expert from Naura Technology Group, who spoke on condition of anonymity due to the sensitivity of the matter, said many experts in the semiconductor industry do not have the ability to scale SMICs for 7nm chips.

Huawei executives call for wider adoption of Chinese-made semiconductors

Trade sanctions, which make it difficult for mainland foundries such as SMIC to purchase advanced chipmaking equipment from the U.S. and its allies, have also "dramatically increased innovation" in China's tooling sector, said Paul Triolo, vice president of China and China. Albright heads the technology policy of Stonebridge Group.

“As demonstrated by the Huawei Mate 60 Pro, US regulations have forced companies like SMIC to expand the capabilities of existing gadgets beyond target levels, and Huawei has been able to use a systems engineering approach to compensate for this to some extent.” “Access to advanced manufacturing technologies,” Triolo said.

"Huawei's future ability to use advanced semiconductors in its products largely depends on SMIC," he said. “SMIC’s ability to produce 7nm semiconductors is very important and ties into Huawei’s need to produce competitive products, especially for 5G.”

While the controversy surrounding the Mate 60 Pro series' improved processor has sparked debate in Washington about imposing additional controls on both Huawei and SMIC, Triolo believes the Biden administration should do so given ongoing efforts to improve US-China relations. Reluctance to introduce new restrictions.

“It will also be very difficult to prove that SMIC violated US extraterritorial export controls,” he said. “Any new restrictions would harm the companies' American suppliers and provoke resistance from American industry.”

Following the unveiling of the Huawei smartphone, Beijing is setting high goals for advanced manufacturing.

Huawei's ability to maintain positive momentum in 5G smartphone sales depends on the company ensuring a stable supply of key components and being able to do so cost-effectively.

The company still does not supply itself with some semiconductor components because it relies on foreign suppliers, including US-based Japanese filter supplier Murata. GlobalFoundries and Taiwan's Semi are growing, according to recent research from TF International Securities analyst Kuo Ming-chi.

Competition from other Chinese phone makers Android and Apple in China, the world's largest smartphone market, also means Huawei must overcome U.S. restrictions affecting supply chain partnerships, according to IDC analyst Will Wong.

Memory chip manufacturer For example, SK Hynix denied rumors that it supplied components for the Mate 60 Pro series. The South Korean company said in a statement to the newspaper: "SK Hynix will no longer deal with Huawei after the US imposed restrictions on the company."

“Another potential problem is how Huawei can win back former users who have switched to other brands of smartphones in recent years,” Wong said. This is a particularly challenging task as other brands manage ecosystems that create stickiness in their relationships with consumers.

Huawei no longer cares about US sanctions on the Huawei Mate 60 Pro.