Huawei Technologies Co., a leading Chinese tech company, has been striving for self-reliance in semiconductor manufacturing, especially after facing U.S. sanctions that restrict access to advanced chipmaking equipment. These sanctions have impeded Huawei’s ability to produce cutting-edge chips, compelling the company to explore alternative solutions.
🔬 Current Focus on 7nm Technology
Due to the limitations imposed by the sanctions, Huawei is currently concentrating on improving its 7nm chip production capabilities. Zhang Ping’an, Executive Director of Huawei, acknowledged that achieving 3nm or 5nm processes is unlikely in the near term, emphasizing that resolving issues related to 7nm technology would be a significant accomplishment.
Huawei’s reliance on Semiconductor Manufacturing International Corporation (SMIC) for chip fabrication has further influenced this focus. SMIC faces challenges in producing advanced chips due to restrictions on acquiring extreme ultraviolet (EUV) lithography equipment, which is essential for manufacturing chips below 7nm.
🏗️ Investment in R&D for 3nm Ambitions
Despite current limitations, Huawei is investing heavily in research and development to pave the way for future advancements. The company is constructing a semiconductor R&D center in Shanghai, with a reported investment of $1.66 billion. This facility aims to develop lithography machinery necessary for producing 3nm and 5nm chips, signaling Huawei’s long-term commitment to advancing its semiconductor capabilities.
Additionally, Huawei is reportedly working on developing its own EUV lithography technology, specifically laser-induced discharge plasma (LDP) systems. Trial production is expected to commence in the third quarter of 2025, with mass production planned for 2026.
🌐 Global Context
While Huawei focuses on overcoming its current challenges, global competitors like TSMC and Samsung are progressing towards 2nm chip production. This technological gap underscores the urgency for Huawei to accelerate its R&D efforts to remain competitive in the semiconductor industry.
🔮 Outlook
Huawei’s ambition to commence 3nm chip production by 2026 is a bold move, considering the current technological and geopolitical hurdles. Success will depend on the company’s ability to develop indigenous lithography solutions and improve existing manufacturing processes. If achieved, this milestone could significantly enhance China’s position in the global semiconductor landscape.
