Ming-Chi Kuo noted that ASML is in rumors to increase the price of its chip-making tools for TSMC. But that won’t be the exact case. Perhaps, the Taiwanese semiconductor firm will likely bargain with ASML and suppress it for price reductions.

TSMC is one of the biggest customers of ASML. The latter used to sell large lithography machines to the former to print circuit patterns onto silicon wafers.

Wall Street stated a few points that hint at why ASML could raise the price of its chip equipment for TSMC. Firstly, ASML has planned to achieve €30 to €40 billion in revenue range by 2025. The firm is taking new steps to enhance its sales by next year.

Secondly, TSMC and other customers of the Dutch chip equipment supplier are looking forward to more advanced chipmaking processes by next year. This may ultimately increase the demand for ASML’s highest-end EUV tools pricing €350 million.

Lastly, ASML is seeing a major decline in semiconductor stocks for the time being. Customers like Intel and Samsung didn’t make much progress. But TSMC has recently reported blockbuster earnings with 54% profit. This could be a reason to hike chip equipment prices for the Taiwanese semiconductor firm.

TSMC is highly dependent on ASML for chipmaking tools. Thus, the Dutch firm could take advantage of this point to some extent by raising its price. However, the U.S. government may subsidize this dealing with better profits on both sides.

Note that neither ASML nor TSMC has confirmed this news so far. Hence, it is better to take this rumor with a grain of salt at present.

ASML rumored to increase chip-making tool price for TSMC (Image Credits: ASML)

The post ASML rumored to increase chip-making tool price for TSMC appeared first on Huawei Central.

Huawei is unable to access high-end chipmaking tools due to U.S. sanctions. Now the foreign authorities are planning more challenges for the company in semiconductor manufacturing. They are pressing Biden to impose more restrictions.

Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi – the members of the House Select Committee on strategic conflicts between the U.S. and China, recently wrote a letter to Gina Raimondo (Commerce Secretary) on Chinese tech progress concerns.

The letter highlights that the Biden administration should increase export controls to block Huawei’s secretive chip network growth. The “clandestine semiconductor facilities” of Huawei will ultimately harm U.S. security on a large scale.

“…Just as you have taken steps to prohibit Huawei from purchasing U.S. chips, it is similarly important and logical to restrict the flow of SME to prevent Huawei from fabricating its chips. Restricting the flow… will send an important signal to… Huawei that the United States will take action to prevent U.S. technology from enabling its problematic technology ambitions.” (via)

According to Bloomberg, Huawei is currently teaming up with Pengxinxu, SwaySure Technology, and Qingdao SiEn to expand its chip network. These firms are free from U.S. restrictions and do not count in the Entity list.

US lawmakers urge tougher restrictions on Huawei chip tech: Report (Image Credits: Huawei)

Huawei also collaborated with the PXW Semiconductor to accelerate its chipmaking process. But later, the U.S. added the respective firm to the entity list, prohibiting it from accessing advanced technologies. Now they are planning the same treatment for the above-mentioned firms to block ways for Huawei.

The Commerce Department has said to respond on this matter soon with their appropriate mediums.

Huawei launched a 7nm chip last year which belongs to the SMIC foundry. Since then, the U.S. started eyeing the OEM for every step it takes in chipmaking.

The U.S. authorities canceled the licenses of many foreign semiconductor firms from selling chipsets or chipmaking equipment to Huawei. ASML is one of the major examples of this aspect. Now lawmakers are urging to ban 120+ Chinese companies and impose fresh restrictions on chip tool sales in China.

Apart from its own efforts, the U.S. is pressuring its neighboring countries to impose the same restrictions on China. Although they didn’t show much interest.

How Huawei will make its steps more firm in the chip tech field amid these US restrictions and export problems would be worth looking forward to.

[Source]

The post US lawmakers urge tougher restrictions on Huawei chip tech: Report appeared first on Huawei Central.

SMEE (Shanghai Micro Electronics Equipment) filed a new EUV patent. It is entitled “extreme ultraviolet [EUV] radiation generators and lithography equipment”.

The patent was issued in March 2023 and is now being examined by the Chinese Intellectual Property Administration. However, it may soon receive approval.

EUV or the Extreme UltraViolet Lithography machines help to make high-end processors with the use of light. This ray has a wavelength of 13.5nm which is 14 times less than DUV (193nm). EUV is required to build chips smaller than 7nm.

SMEE Company:

Among several Chinese companies, SMEE also comes in U.S. blacklisted firms. The company was unable to use foreign goods or chipmaking tools following the sanctions. However, the new patent has appeared as a ray of hope amid the chip war.

The patent details are currently unknown. But it indicates that SMEE is slowly taking steps towards new chipmaking tools. China is dependent on DUV (Deep UltraViolet) lithography machines for making its devices and smart product processors.

However, it seems SMEE is progressing in the EUV lithography after years of effort and dedication and will be able to produce processors at the 28nm level or below.

New EUV patent hints Huawei could progress in chip field despite US ban (Image Credits: Huawei)

It’s good news since the U.S. has restricted many foreign suppliers from shipping their advanced chipset-making tools to China. One of them is ASML which still accounts for a big share of the Chinese market for lithography machines.

But now the Netherlands is planning to hold back ASML from supplying its chipmaking tools in China (read the complete report HERE). At such a stage, the new EUV patent news has appeared as a boon in the Chinese chipmaking progress.

U.S. may block ASML to supply chipmaking tools in China (Image Credits: Reuters)

How it will impact Huawei?

The new patent will help Huawei to progress in the chip-making processes. Currently, the firm builds its Kirin chips in the SMIC foundry using the stocked DUV equipment. It is also seeking ways to improve its 7nm chip before proceeding with new techs.

With advanced chip-making equipment, Huawei devices may get access to high-end chips and AI processors. We have to wait for more details on this matter for a clear view.

[Source – SCMP]

The post New EUV patent hints Huawei could progress in chip field despite US ban appeared first on Huawei Central.

Bloomberg noted that most of the ASML trade licenses will expire later this year. These licenses are an official approval of shipping certain chipmaking tools like DUV lithography machines to China. Many Chinese firms depend on this equipment.

ASML can request license renewal but the Netherlands government might reject it. This could be a follow-up of the U.S. trade export controls that have been limiting foreign suppliers to deliver advanced tools or chipmaking machines in China.

Biden administration has said to increase the security measures for its partner countries as well. This will ultimately prohibit the other regions from doing business with the Chinese companies, creating an absence of advanced tech products.

Inputs reveal that ASML ships the chip-producing tools with maintenance agreements that help to keep the equipment alive. However, a limitation on selling these machines could soon make them inoperable.

Netherlands to limit ASML chipmaking tools for Huawei and other Chinese firms (Image Credits: ASML)

Neither ASML nor the Dutch government has commented on this matter so far. If correct, such a step will increase problems for Huawei and other chipmakers in China. For now, ASML is the main supplier of chip equipment for Chinese firms.

However, blocking ASML from supplying chipmaking tools will affect Huawei and the Chinese chipset industry. It will also impact the chipmaker and its overall growth in the Chinese market. As per reports, China is already 2-3 years behind in the chip race.

The decision to restrict ASML from shipping chipmaking equipment to China is still under consideration and hasn’t been confirmed. How Huawei and Chinese companies will react on this matter would be worth looking forward to.

[Source – Bloomberg]

The post Netherlands to limit ASML chipmaking tools for Huawei and other Chinese firms appeared first on Huawei Central.

China’s General Administration of Customs released a new report this week. It says that the native region has broken all the records in the past three years (2021). Chinese companies have imported chipmaking tools worth $26 billion this year.

The report reveals that China is stocking up chipmaking machinery in advance. It’s eventually a backup in case the U.S. authorities impose further restrictions on Chinese firms for buying high-end technologies to develop powerful chipsets.

Also, the ultimate move has arrived when the American, Japanese, as well as Dutch governments are looking to push off more limitations on the Chinese firms.

Chinese semiconductor components (Image Credits: Huawei)

Inputs reveal that the Chinese companies bought chipmaking equipment from Tokyo Electron Ltd., ASML Holding NV, and Applied Materials Inc. last year.

During the gap of seven to eight months, these companies also purchased inferior equipment due to increased trade export controls. Notably, a high importing from the Dutch (ASML) helped the country to increase its sales by $2 billion in July 2024.

ASML Tools

ASML chipmaking tools shipment to China reached 21% in Q2 2024. For now, ASML is the only supplier of advanced chipmaking machines like lithography equipment. Chinese companies have purchased most of the tools from ASML. These firms aim to make more efficient processors using old and unrepaired systems.

The latest report implies that China has achieved 15% wafer production per month this year. With constant efforts, the Chinese firms could meet the goal of 10.1 million wafers per month by 2025. Perhaps U.S. challenges won’t stop China from pacing ahead.

Chinese firms purchased chipmaking tools worth $26 billion amid U.S. ban (Image Credits: ASML)

[Source]

The post Chinese firms purchased chipmaking tools worth $26 billion amid U.S. ban appeared first on Huawei Central.

Whether it’s Kirin processors or Ascend AI chips, Huawei is working hard on both fronts. Before checking the latest developments, let’s go through a small flashback.

The “U.S. bans Huawei” is not a new story to Chinese consumers. In 2019, the American government blacklisted Huawei in the name of U.S. security concerns. This ultimately cut the supply of highly advanced chipmaking tools to China.

Before this ban, Huawei used to print its chip through TSMC. However, foreign trade restrictions led the Taiwan chip maker to give up on new Kirin processor production. As a result, Huawei put a halt on its high-end Kirin chipset project.

Turning point:

Although the tables turned in August 2023 when Huawei introduced the Mate 60 series with a 7nm Kirin 9000s 5G chip. The smartphone launch not only caused a stir in the Chinese market but also gave a headache to the U.S. Commerce Department.

Even though the chip has been developed using old equipment and tech materials, it was enough to show that Huawei is coming back on track. The U.S. became busy finding why, where, and how the chip was made. Meanwhile, Huawei started looking at how to increase its chip yields.

Major aids:

The Chinese phone maker started teaming up with native partners like SMIC for its chip development. As per the details, the Kirin 9000s uses an N+2 7nm tech from SMIC. More new Kirin chips based on SMIC tech are also rumored to be underway.

Kirin chipset (Image Credits: HiSilicon Kirin)

Huawei is also taking help from the stocked chip-making equipment by ASML to develop new processors. The Chinese government, on the other hand, has eventually begun backing up the company with more funding for chip development.

Huawei further believes that if they don’t start using self-made chips now, the tech gap will continue to persist. It seems the U.S. sanctions appeared as an opportunity for the firm to become independent.

New development:

In April 2024, Huawei introduced the Pura 70 Ultra with a new Kirin 9010 chip. TechInsights found that the new processor belongs to the SMIC foundry. This news has once again created a buzz in the U.S. on Huawei’s progress.

Both Huawei and SMIC are now in the headlines for developing a 5nm chip. The latter is said to lay chip manufacturing lines in Shanghai for mass production. Rumors regarding 5nm and 3nm chip development are also flying in the air.

Although Huawei put a full stop to these talks by saying that the company is currently focusing on resolving 7nm issues instead of making new developments.

Huawei AI chip is another end of the rope. Ascend 910B has become quite popular in China. Chinese firms are constantly picking the respective chip over the U.S. alternatives such as Nvidia A100. Tests even proved that Huawei AI processors are more efficient than that of Nvidia.

Huawei AI chips (Image Credits: Huawei)

A recent rumor has added that Huawei is now testing powerful Taishan cores that are 175% faster than the Kirin 9000s. Hence, we might see a dynamic 5nm processor with the Mate 70 series later this year.

Rivals like TSMC says that Huawei will take years to catch up in the chip race. But regardless of the tough U.S. ban and trade challenges, Huawei is trying its best to rise in the chip production game. It would be interesting to see how Huawei will win this game!

Despite U.S. ban, Huawei trying well to catch up with rivals in the chip race (Image Credits: Huawei)

The post Despite U.S. ban, Huawei trying well to catch up with rivals in the chip race appeared first on Huawei Central.

Another vital reason behind this establishment is to promote lithography tools development. The Chinese manufacturer focuses on increasing the wafer fab equipment amount which is quite essential in the making of advanced chipsets.

Huawei relied upon global chipmakers like ASML, Canon, and Nikon to produce high-end processors. Although the U.S. export trading rules have made it difficult for the company to access advanced chipmaking tools and equipment from foreign markets.

Thus the company plans to make powerful equipment that can match the level of the above-listed chipmakers’ tools. To do so, Huawei has doubled the salary of its employees compared to others and is hiring more talented workers for its workforce.

But the Chinese OEM is also making its employees work ‘007’ (working from midnight to midnight, seven days a week), which has become a big challenge as well as a demanding work environment for the existing employees in the industry.

Huawei chips made by Brute-Force system

Huawei Chip Equipment R&D Center – Shanghai

The inputs reveal that the company is setting up its new R&D center in the western Qingpu district of Shanghai. This area eventually has the best facilities for Huawei’s chip design, HiSilicon T, as well as R&D centers for wireless techs and smartphones.

Huawei put on a total investment of $1.66 billion for this center and it has an area of 224 football fields. Once established, it can make room for 35000 employees.

It is worth noting that the development of the respective center for making lithography tools will help the company overcome the challenges of demand for essential chip-making tools, especially in terms of 16/12nm processes and smaller ones.

The Chinese OEM is associating with local suppliers and other partners to progress in the chip production segment. These efforts may ultimately aid the firm in achieving self-sufficiency in semiconductor projects.

Huawei R&D center Shanghai (Image Credits: Huawei)

(Source – Nikkei Asia)

The post Huawei reportedly setting up massive chip equipment R&D center in Shanghai appeared first on Huawei Central.

Biden administration considers pressuring the Netherlands to stop ASML from sending its chipmaking tools to China. The details mention that the authorities may list some Chinese chipmaking firms and restrict them from obtaining Dutch tools.

The U.S. export policy chief – Alan Estevez will meet the Dutch government and ASML executives in the Netherlands next Monday to bake discussions on this matter.

“The Netherlands always has good discussions with our partners. The meeting of officials on Monday is one example of that” – said the Dutch Foreign Ministry, marking confirmation of the upcoming meeting between the U.S. chief and ASML.

U.S. may block ASML to supply chipmaking tools in China (Image Credits: Reuters)

While the meeting may strengthen relations between the Dutch authorities and the U.S., it mainly aims to push back the potential of China making advanced chipsets.

China opposes:

The Chinese Embassy, on the other hand, says that it doesn’t support the unnecessary expansion of the national security allegations on its companies from the U.S. At the same time, the American government is forcing other countries to join their agenda of deforming Chinese firms in the global market.

Not only China, but the new decision is likely to impact ASML’s sales revenue as China has been the second-largest market for it. Though it is unclear how far things will affect both sides after the U.S.-Dutch meeting on the coming Monday.

Huawei has joined hands with SMIC to build new 5nm chips. The firm is likely to use some stocked equipment to create the new processors. It would be worth seeing whether new efforts of the U.S. will affect Huawei and its partners or not.

U.S. may block ASML to supply chip tools in China (Image Credits: Reuters)

(Source – Reuters)

The post U.S. may reportedly stop ASML to supply chipmaking tools to China appeared first on Huawei Central.

So far, the Chinese tech giant used foreign equipment to build its chipset products. One of them is the ASML extreme ultraviolet lithography tech equipment. However, the U.S. trading rules put a barricade to export the respective technology in China.

To get rid of such tensions, Huawei joined hands with a new chipmaker and applied for an effective patent. Accordingly, the firm is working on a mechanism based on the SAQP (self-aligned quadruple patterning) to lessen its dependency on lithography.

How it works?

Looking into the Huawei patent, the application says that the Brute-Force system helps in forming more advanced chips. Here, the term Quadruple refers to a technique for engraving lines on silicon wafers multiple times to raise the transistor density as well as increase overall performance.

“Adoption of this patent will increase the design freedom of circuit patterns.” – said the China Intellectual Property Administration.

Huawei Brute-Force system (Source: Bloomberg)

Notably, the respective method seems a reliable solution for China to develop 5nm chips. Although the research firm – TechInsights says that the region still needs some latest technologies to lead in the long-run processor race.

“It can mitigate them, but not completely overcome the technical issues of not having EUV” – TechInsights.

In 2023, a chipmaking firm – SiCarrier opted for the same technology to obtain certain technical thresholds on 5nm chips. At that time, the patent said to prevent the use of EUV machines as well as reduce the production cost to a greater extent.

As of now, some more Chinese companies are trying to use the same technique for producing premium-level semiconductors. Meanwhile, the Biden administration is ensuring to keep Huawei and its partners away from this surface. Read More…

(Source)

The post Huawei reportedly testing new Brute-Force system to build advanced chips appeared first on Huawei Central.

According to the inputs, the Chinese ambassador – Tan Jian shared his thoughts in an interview with NRC publications and said that the Chinese companies will strongly fight against the U.S. chip dominance war.

Tan said that the U.S. has unnecessarily increased the restrictions on the name of security. Notably, these prohibitions also cover such matters that have nothing to do with the users’ safety or privacy threats. Meanwhile, the U.S. authorities are doing the same with other fellows like Russia.

Hence, it is important to take a step against increased controls, political pressure, and disinformation that are blocking Chinese companies from operating in their respective fields. Yet, the focus will be to respond suitably without affecting the bond and relationship with the European Union.

“If the Americans treat us in a hegemonic manner, we will of course respond. But our relationship with the EU should not be affected.” – said Tan Jian in the NRC interview.

U.S. Restrictions Impact:

Chip makers like ASML are facing challenges after the Dutch government put a barricade on its export licenses at the request of U.S. President Joe Biden. As a result, the company had to cancel its shipments of some machines to China.

On the other hand, the U.S. trade pressure on firms like Huawei is not a secret to us. The Chinese tech maker went through several obstacles that curbed it from using high-end technologies from the foreign market or selling its products.

U.S. Response to Tan’s comment:

White House spokesperson – John Kirby said that the U.S. restrictions only aim to remove the risk factors and not affect the nation’s bond with other countries. The decision regarding export licenses only works to protect the U.S. national security.

On the flip side, Tan believes that European-China policy has just become confusing. Yet, Chinese companies are preparing themselves and will respond to the constant U.S. chip dominance.

Firms like Huawei already started shifting their focus on native partners such as SMIC and stripping off their public relations in the U.S. ground. The Chinese tech maker aims to gradually eliminate the dependency on foreign trade and diminish their impact on its growth.

(Source)

The post Chinese companies preparing to counter U.S. chip dominance appeared first on Huawei Central.