Huawei's New MateBook Fold Reveals China's Semiconductor Lag Amid US Restrictions

Huawei's new notebook shows China's SMIC years behind TSMC

Despite concerted efforts by the Chinese to bolster domestic semiconductor production in defiance of US trade policy, new evidence uncovered by Canadian research outlet TechInsights suggests SMIC, the Middle Kingdom's top chip manufacturer, remains generations behind the rest of the world. In a research note published Monday, TechInsights confirmed that the Kirin X90 system-on-chip (SoC) in Huawei's Matebook Fold was fabbed on SMIC's now two-year-old 7nm N+2 process. The findings debunk rumors the SoC would be fabbed on a homegrown 5nm process node from SMIC. (Full name: Semiconductor Manufacturing International Corporation.) As you may recall, Huawei rocked the semiconductor industry in late 2023 after TechInsights discovered the first concrete evidence that SMIC had managed to mass produce chips on a 7nm process, in spite of US export controls barring the sale of extreme ultraviolet lithography (EUV) equipment from the likes of ASML in the region. While technically possible to build using older deep ultraviolet lithography equipment, most fabs have long since transitioned to more sophisticated extreme ultraviolet lithography kit for 7nm and small process nodes. SMIC has been rumored to have developed an even more sophisticated 5nm process node also using DUV technology. However, as TechInsights points out, chips based on the tech remain elusive. Just because a fab can shrink the process node doesn't mean it can do so while maintaining acceptable yields. This is usually why the first chips to be built on bleeding-edge process nodes tend to be tiny, since you can have a relatively high defect rate and still maintain acceptable yields. It probably doesn't help that, since the launch of Huawei's Kirin X90, the US has managed to block the sale of older DUV lithography gear in China. "With the device still manufactured using its N+2 process, this likely means that SMIC has not yet achieved a 5nm equivalent node that can be produced at scale," the researchers wrote. For reference, foundry giant TSMC (Taiwan Semiconductor Manufacturing Company) began mass-producing chips based on its 5nm N5 process in 2020 and 3nm chips for Apple's A-series and M-series in 2023. TSMC, Intel, Samsung, and Japanese foundry upstart Rapidus are all on track to ship 2nm wafers within the next 12-24 months. This, according to TechInsights, puts Chinese fabs at least three generations behind the rest of the world. "This news points to the fact that US-imposed technology controls are likely continuing to impact SMIC's ability to catch up to current foundry leaders." The findings come after White House tech czar David Sacks argued China's AI and chipmaking tech trailed the US by just two years. Huawei's founder, Ren Zhengfei rates his latest AI chips as being just a generation behind his western counterparts. That said, as we pointed out at the time, not all AI workloads need chip built on the latest and greatest silicon -- at least so long as you can wrangle enough of them. While US export controls have effectively blacklisted many Chinese chip designers and fabs from doing business with the likes of TSMC or lithography linchpin ASML, exemptions have been granted for many legacy nodes and memory technologies. These exemptions have enabled TSMC as well as South Korean memory vendors Samsung and SK Hynix to continue operating facilities in China. Now, US officials are weighing whether to revoke these authorizations, Reuters reported Friday. Should this happen, access to American goods and technologies at these plants, currently allowed for companies with a verified end user (VEU) license, could be limited. The move, officials told the publication, is a worst-case contingency plan in the event trade negotiations between the two superpowers fall apart. Even still, the possibility of Uncle Sam revoking VEU licenses has chipmakers in the region concerned the US-China trade war could derail their investments in the region. On Sunday, South Korean Trade Minister Yeo Han-koo said he would raise concerns regarding the proposed policy shift. Samsung Electronics and SK-Hynix are among South Korea's most influential tech firms as the leading producers of DRAM and NAND memory. Relations between the long-time allies have already been strained following US President Donald Trump's decision to enact sweeping tariffs, including a 10 percent blanket duty on foreign imports and a 25 percent import tax on South Korean goods. That South Korean tax has been paused until early July while the two nations negotiate a trade deal. ®

Huawei's new laptop uses older China-made chip, US curbs stall SMIC, report shows

BEIJING, June 23 (Reuters) - Huawei Technologies' new MateBook Fold laptop is powered by an older-generation chip made by SMIC (0981.HK), opens new tab, highlighting how U.S. export curbs are hindering China's top foundry from advancing to next-generation semiconductor manufacturing, Canadian research firm TechInsights said on Monday. There was widespread speculation in the industry that Huawei (HWT.UL) would use SMIC's newer 5nm-equivalent N+3 process node chip in the MateBook Fold that, according to TechInsights, marks Huawei's "most aggressive entrance into full-stack computing; chip design, OS development, and hardware integration". However, the laptop instead features the Kirin X90 chip, built on the same 7nm N+2 process node that was first introduced in August 2023, TechInsights said in a report. "This likely means that SMIC has not yet achieved a 5nm equivalent node that can be produced at scale," it said. "U.S.-imposed technology controls are likely continuing to impact SMIC's ability to catch-up to current foundry leaders in more advanced nodes across chips for mobile, PCs, and cloud/AI applications," TechInsights added. The MateBook Fold, which does not have a physical keyboard and features an 18-inch OLED double screen, was one of two new laptops Huawei launched last month. The devices are part of Huawei's broader push to build a self-reliant ecosystem amid U.S. efforts to limit its access to advanced chips. The laptops are the first to be sold with Huawei's Harmony operating system. It has not officially disclosed the processor used, though past models have used Intel (INTC.O), opens new tab chips. Huawei did not immediately respond to a request for comment. Reuters reported last year that the U.S. revoked licences that had allowed companies including Intel and Qualcomm (QCOM.O), opens new tab to ship chips used for laptops and handsets to Huawei. The U.S. curbs limited SMIC's access to advanced chipmaking tools, including extreme ultraviolet lithography. China-based foundries have to now rely on less efficient multi-patterning techniques that reduce yield, the report said. The report noted that Huawei's 7nm chip is several generations behind those used by Apple (AAPL.O), opens new tab, Qualcomm, and AMD (AMD.O), opens new tab. It added that China remains at least three generations behind the global semiconductor frontier, as foundries like TSMC and Intel prepare to roll out 2nm process technology within the next 12 to 24 months. Earlier this month, Huawei CEO Ren Zhengfei told Chinese state media that Huawei's chips were just one generation behind that of U.S. peers but the firm was finding ways to improve performance through methods such as cluster computing. Reporting by Che Pan and Brenda Goh; Editing by Himani Sarkar Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:China

Huawei's new laptop uses older China-made chip, US curbs stall SMIC

Huawei's new MateBook Fold uses a 7nm chip by SMIC, not the expected 5nm version, highlighting limits from US export curbs. TechInsights says SMIC still lags behind global foundries. The laptop runs Huawei's Harmony OS and reflects its push for tech self-reliance amid chip restrictions.Huawei Technologies' new MateBook Fold laptop is powered by an older-generation chip made by SMIC, highlighting how US export curbs are hindering China's top foundry from advancing to next-generation semiconductor manufacturing, Canadian research firm TechInsights said on Monday. There was widespread speculation in the industry that Huawei would use SMIC's newer 5nm-equivalent N+3 process node chip in the MateBook Fold that, according to TechInsights, marks Huawei's "most aggressive entrance into full-stack computing; chip design, OS development, and hardware integration". However, the laptop instead features the Kirin X90 chip, built on the same 7nm N+2 process node that was first introduced in August 2023, TechInsights said in a report. "This likely means that SMIC has not yet achieved a 5nm equivalent node that can be produced at scale," it said. "US-imposed technology controls are likely continuing to impact SMIC's ability to catch-up to current foundry leaders in more advanced nodes across chips for mobile, PCs, and cloud/AI applications," TechInsights added. The MateBook Fold, which does not have a physical keyboard and features an 18-inch OLED double screen, was one of two new laptops Huawei launched last month. The devices are part of Huawei's broader push to build a self-reliant ecosystem amid U.S. efforts to limit its access to advanced chips. The laptops are the first to be sold with Huawei's Harmony operating system. It has not officially disclosed the processor used, though past models have used Intel chips. Huawei did not immediately respond to a request for comment. Reuters reported last year that the U.S. revoked licences that had allowed companies including Intel and Qualcomm to ship chips used for laptops and handsets to Huawei. The US curbs limited SMIC's access to advanced chipmaking tools, including extreme ultraviolet lithography. China-based foundries have to now rely on less efficient multi-patterning techniques that reduce yield, the report said. The report noted that Huawei's 7nm chip is several generations behind those used by Apple, Qualcomm, and AMD. It added that China remains at least three generations behind the global semiconductor frontier, as foundries like TSMC and Intel prepare to roll out 2nm process technology within the next 12 to 24 months. Earlier this month, Huawei CEO Ren Zhengfei told Chinese state media that Huawei's chips were just one generation behind that of US peers but the firm was finding ways to improve performance through methods such as cluster computing.

Huawei's new laptop uses older China-made chip, US curbs stall SMIC, report shows

BEIJING (Reuters) -Huawei Technologies' new MateBook Fold laptop is powered by an older-generation chip made by SMIC, highlighting how U.S. export curbs are hindering China's top foundry from advancing to next-generation semiconductor manufacturing, Canadian research firm TechInsights said on Monday. There was widespread speculation in the industry that Huawei would use SMIC's newer 5nm-equivalent N+3 process node chip in the MateBook Fold that, according to TechInsights, marks Huawei's "most aggressive entrance into full-stack computing; chip design, OS development, and hardware integration". However, the laptop instead features the Kirin X90 chip, built on the same 7nm N+2 process node that was first introduced in August 2023, TechInsights said in a report. "This likely means that SMIC has not yet achieved a 5nm equivalent node that can be produced at scale," it said. "U.S.-imposed technology controls are likely continuing to impact SMIC's ability to catch-up to current foundry leaders in more advanced nodes across chips for mobile, PCs, and cloud/AI applications," TechInsights added. The MateBook Fold, which does not have a physical keyboard and features an 18-inch OLED double screen, was one of two new laptops Huawei launched last month. The devices are part of Huawei's broader push to build a self-reliant ecosystem amid U.S. efforts to limit its access to advanced chips. The laptops are the first to be sold with Huawei's Harmony operating system. It has not officially disclosed the processor used, though past models have used Intel chips. Huawei did not immediately respond to a request for comment. Reuters reported last year that the U.S. revoked licences that had allowed companies including Intel and Qualcomm to ship chips used for laptops and handsets to Huawei. The U.S. curbs limited SMIC's access to advanced chipmaking tools, including extreme ultraviolet lithography. China-based foundries have to now rely on less efficient multi-patterning techniques that reduce yield, the report said. The report noted that Huawei's 7nm chip is several generations behind those used by Apple, Qualcomm, and AMD. It added that China remains at least three generations behind the global semiconductor frontier, as foundries like TSMC and Intel prepare to roll out 2nm process technology within the next 12 to 24 months. Earlier this month, Huawei CEO Ren Zhengfei told Chinese state media that Huawei's chips were just one generation behind that of U.S. peers but the firm was finding ways to improve performance through methods such as cluster computing. (Reporting by Che Pan and Brenda Goh; Editing by Himani Sarkar)