A high-ranking Huawei executive has reportedly made a rare admission that China’s ambitious semiconductor efforts may have peaked. On June 9, du

Huawei exec concerned over China’s inability to obtain 3.5nm chips, bemoans lack of advanced chipmaking tools

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2024-06-11 20:30:03

A high-ranking Huawei executive has reportedly made a rare admission that China’s ambitious semiconductor efforts may have peaked. On June 9, during the Mobile Computility Network Conference in Suzhou, China, Huawei’s Cloud Services CEO Zhang Ping’an voiced concerns about China’s inability to source 3.5nm chips because of U.S. sanctions.

Zhang pointed out that TSMC, based in Taiwan and therefore not subject to the U.S. sanctions, continues to increase its supply of 3.5nm semiconductors. “However, under U.S. sanctions, China has no way to secure these products,” he said.

The comments were reportedly a surprise to many in the industry since China has consistently reported confidence in the strength of its semiconductor growth. In May, the Chinese government announced a 65.6 trillion won ($47.5 billion) third fund to reinforce investment in the country’s semiconductor industry.

Huawei recently succeeded in mass-producing 7nm chips without using extreme ultraviolet (EUV) technology. This surprised the global semiconductor market and led to speculation that the chipmaker could soon mass-produce 5nm chips as well.

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