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)

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The U.S. is looking for every loophole that can help Huawei in the advanced chipmaking process. A recent report said that the Biden administration may soon add more Chinese firms to the Entity list, blocking the growth of the chip network in China.

Apart from keeping an eye on China, the U.S. is now investigating other foreign suppliers who can lend a hand to Huawei in semiconductor manufacturing.

Inputs reveal that the U.S. Commerce Department started probing TSMC for chip dealings with Huawei. The investigation is in the early stages and aims to check if the chipmaker has been making any AI or phone chips for Huawei for the time being.

If TSMC is found breaching the U.S. export regulations, it might face huge penalties or even a prohibition on using advanced chipmaking tools or techs temporarily.

Under this investigation, the U.S. authorities have targeted the Mate 60 series’ Kirin 5G 9000s chip and recently developed AI Ascend processor. Both these chipsets significantly contribute to China’s progress in the semiconductor industry.

The Commerce Department inquired TSMC about having any direct or indirect (via different names) chip shipments to Huawei in the past or at present. Investigators are also looking into other related aspects like “know-your-customer checks”.

Issues for TSMC

Further details note that the investigation could trouble TSMC to some extent. The Taiwanese chipmaker is one of the key chipset suppliers for U.S. firms.

Huawei AI chipsets (Image Credits: Huawei)

For instance, Apple and Nvidia mainly rely on TSMC for their processors. Also, the Biden administration was planning a $6.6 billion subsidy for the chipmaker to develop its third fabrication unit in Arizona. However, an investigation could halt benefits for some time.

TSMC responded to this investigation and said that it follows all the U.S. export regulations without fail. Although if there is a problem, then it will take action to guarantee compliance in all possible aspects.

“TSMC is a law-abiding company and we are committed to complying with all applicable regulations. If we have any reason to believe there are issues, we will take prompt action to ensure compliance.”

HuaweiCentral’s Take

The U.S. will try every effort to push back Huawei as done in 2019. But this time, the Chinese OEM is focusing on being self-reliant. A recent report claimed that Huawei Kirin 7nm chip performance can match the level of the 5nm processor of TSMC.

How far the U.S. will stretch this investigation on TSMC chip dealings with Huawei would be worth looking forward to.

U.S. investigates TSMC on chip dealings with Huawei (Image Credits: Huawei/TSMC)

(source)

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LightReading learned that the US ban on Huawei 5G network equipment did not affect the company much. Despite huge struggles, the company’s sales in the 5G products department increased by a tenth last year with a net profit hike of 145%.

Notably, these rates are ‘far ahead’ of its main rivals like Ericsson and Nokia. A major credit goes to Huawei’s new strategies in the network solutions field. The company diversified into new businesses and remained highly competitive in the network arena.

Huawei’s MIMO consists of top-of-the-range antennas and is one of the most advanced 5G techs. It is a “generation ahead” of Ericsson’s best products, as per the report.

The MIMO (multiple-input multiple-output) appears as lighter equipment that reduces pressure on masts and can easily be transferred to different places. Seeing such advanced 5G network technologies, an executive of a foreign company said:

“US sanctions have not had a noticeable impact on Huawei’s technology competitiveness.”

Another source of the latest report cites that Huawei seemed using TSMC-stocked chips for its network operators. But that couldn’t be a long-term thing. The company has already proved that it can use an advanced 7nm chip for its base stations.

Huawei 5G equipment didn’t face major impact of US ban, says report (Image Credits: Huawei)

AI and smartphone chips seem an area where Huawei has to make more efforts. But other than that, the company already appears self-reliant in many tech fields.

The US authorities tried to pull off Huawei and finish its existence in the 5G market. It thought of treating Huawei just like ZTE and other Chinese tech vendors.

ZTE faced critical conditions after the U.S. sanctions. It nearly went out of business a few years back. However, the case is quite different and positive on Huawei’s side.

The Chinese tech giant struggled initially following the U.S. restrictions on its 5G network equipment. The “rip and replace” program is still in action across various countries and regions. Yet, the company is now doing great in the network section.

On the other hand, foreign telecoms are searching for alternatives to Huawei’s network equipment. Germany, for instance, has given a lot of time (till 2029) to its telecom operators to replace Huawei radio access network and work on their network management.

|| Source ||

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TechanaLye – a Japanese semiconductor research company performed a teardown between two Huawei phone chips. One belongs to the Pura 70 series: Kirin 9010. Whereas, the other one comes out of a top-end Huawei model from 2021.

As per the details, the circuit diagrams of both processors differ from each other. The latest Kirin chip designed by HiSilicon belongs to SMIC and has adopted a 7nm process while the 2021 device’s SoC comes from TSMC and runs on 5nm tech.

Comparing the performance aspects, TechanaLye found the Huawei Kirin 7nm chip draws level with TSMC 5nm. The chips differ in size (SMIC 7nm = 118.4 sq. mm.; TSMC 5nm = 107.8 sq. mm.). Yet ‘they have similar areas and performance levels’.

The CEO of TechanaLye – Hiroharu Shimizu notes that HiSilicon improved its design capabilities over time. Huawei’s subsidiary now makes better and stronger processors that are comparable to TSMC 5nm chip regardless of wider circuit width.

In 2021, TSMC used to ship 5nm-based chipsets to Huawei smartphones. But at that time, the U.S. blacklisted the Chinese OEM, dragging it out of its export trade. The government even prohibited foreign suppliers to ship advanced products to China.

TSMC’s Kirin 9000 chip on left, and SMIC’s Kirin 9010 chip on right. (Image Credits: TechanaLye)

Following these challenges, Huawei joined forces with SMIC to develop its Kirin chips based on the 7nm process. The company revived its Kirin chip with Mate 60 Pro last year and introduced a new and more optimized SoC in the form of Kirin 9010 with Pura 70 Ultra. Now we may grab another iconic processor with the Mate 70.

Hiroharu further reveals that the Pura 70 Pro runs on 37 processors paired with memory, sensors, cameras, power supply, and visual functions. 14 of these semiconductors belong to HiSilicon while 18 are from other Chinese suppliers. 5 come from foreign developers such as SK Hynix (DRAM) and Bosch (motion sensors).

TechanaLye’s CEO said:

“In effect, the only semiconductors subject to the U.S. regulations are cutting-edge server chips for AI and other applications. As long as the chips do not pose a military threat, the U.S. is probably allowing their development.”

He adds that the U.S. trade export controls have only made China more self-dependent in producing semiconductors. China chips’ capabilities lag just three years from TSMC and it may catch up soon in the advanced chipset battle.

China is already seeking ways to expand its chip mass production and improve its existing technology. However, the latest report hints that Chinese firms will soon create hurdles for TSMC. The Taiwan chipmaker is already dealing with minimizing the circuits, which is a difficult task. It would be interesting to see how this matter moves ahead.

|| Source – Nikkei Asia ||

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The story of Kirin’s rebirth is quite famous among Chinese consumers. It started when HiSilicon – Huawei’s semiconductor subsidiary used to make Kirin chips using third-party equipment. These machines usually belonged to U.S. suppliers like TSMC.

Everything was fine until the U.S. sanctions banged Huawei and accused it of being a major security threat to foreign nations. Under the Trump era, this ban restricted Huawei and other Chinese firms from selling or purchasing any U.S.-based tech.

These challenges severely affected Kirin chip production. Huawei was unable to develop more power-efficient chips due to a lack of effective chipmaking tools.

Support from Qualcomm

As a result, the OEM limited the Kirin chip supply and said that it may no longer develop new chips following the U.S. sanction. Hereafter, the tech giant started taking help from chipmakers like Qualcomm and Intel for its smartphones and laptops.

Being a blacklisted company, Qualcomm wasn’t allowed to ship highly-efficient processors to China. Thus, the tech giant had to settle with good but less effective chipsets to maintain its position in the Chinese and global smartphone market.

Huawei Kirin 980 chipset (Image Credits: Huawei)

Over time, Huawei acknowledged that the absence of Kirin chips slowed down its smartphone business. The company dropped to the lowest in the consumer market for most of its smart products including phones, tablets, notebooks, and more.

Turning Point…

After fighting for three and a half years, Huawei reignited the Kirin chip with the Mate 60 series. The company launched its flagship product last year (August 2023), which resulted in a high-fy sales with long queues in front of every Huawei offline store.

Mate 60 Pro brought instant progress in Huawei’s smartphone business. The premium phone equipped with a new Kirin 9000s 7nm chip not only breathed new life into the company’s conditions but also into the Chinese smartphone industry.

Huawei Mate 60 Pro (Image Credits: Huawei)

Inputs revealed that Huawei joined hands with SMIC – a Chinese chip foundry for its self-developed processors. The chipmaker used DUV and certain outdated equipment for making Kirin chips. After Mate 60, the company introduced several Kirin 9000 derivatives and other new chips like Kirin 9010 for Pura 70 Ultra.

During an interrogation, Qualcomm said that Huawei doesn’t require its chips anymore. It’s because the company has developed its own chip and plans to expand its production.

That implies the Chinese tech giant may also soon end its dependency on Intel for notebooks with its self-developed Kirin PC chip that has been in rumors for a long.

Huawei has further increased investment in the R&D field. The OEM has recently opened a new giant research and development center worth $1.4 billion in Shanghai to attract foreign scientists and talented youth to boost its chipset manufacturing.

Mate 70 series: 5nm or 7nm?

The company’s next stop is the Mate 70 flagship. Huawei is in rumors to unveil the premium lineup with a 5nm Kirin chipset. But things didn’t reach the confirmation page yet. Hence, it’s still unclear if Mate 70 will use a 5nm or 7nm process tech.

Although we can say that Huawei is working on a new Kirin processor which will be many times more efficient than its predecessors. It is also said to use upgraded AI capabilities with a significant reduction in power consumption for efficient performance.

Thus, the upcoming Kirin chipset with the Huawei Mate 70 flagship series may unlock a huge milestone for the Chinese smartphone industry.

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Tipster @DigitalChatStation says that the SMIC 5nm process tech will likely have better power efficiency than expected. The node could be able to boost performance significantly. It is currently in development but could soon land on official platform.

It’s surprising news amid the chip war between the U.S. and China. The former restricted its suppliers from selling advanced chip-making equipment to the latter.

However, the latest leak says that SMIC somehow managed to develop a 5nm process. It further confirms a previous report on this matter saying that the chipmaker used DUV machines to build new tech and may soon impose them on devices.

Read More:

• SMIC reportedly develops 5nm process, Huawei Mate 70 could be first to use it

If the current leak is accurate, then it could be good news for future Huawei phones. Note that the tipster didn’t mention if the next Kirin chip for Mate 70 models will use this 5nm node. Perhaps the company might settle with a 7nm process for now.

Alleged SMIC 5nm process may improve power efficiency, good news for Huawei? (Image Credits: Weibo)

Yet the latest development hints that the processor tech might change for next year’s Huawei flagship smartphones. Hence, we can expect to see a 5nm Kirin chip with Pura 80 or Mate 80 products. Again, an official statement on this matter awaits.

Neither Huawei nor SMIC has commented on this headline.

Using DUV equipment brings several obstacles for SMIC. For instance, it requires more time and money in wafer fabrication. An estimation said that the SMIC 5nm process could be 50% more expensive than TSMC.

But as per a popular phrase, ‘something is better than nothing’. Over time, the chipmaker might resolve these issues and find an effective solution.

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X tipster @myplace_myworld claims that the rumor of the next-gen Kirin chip surpassing the Snapdragon 8 Gen 1 is false. The input was initially reported by tipster Jason Will, saying that Huawei’s chip would perform better than Snapdragon 8 Gen 2.

The new input also denies the upcoming Kirin chipset to be faster than 9000s and its power efficiency will be close enough to that of the Snapdragon 8 Gen 3.

With these points, it appears that Huawei is struggling to develop a 5nm process chip. An early report said that SMIC has developed a 5nm chip technology without any advanced equipment. Probably the new tech could show up with the Mate 70 flagship.

Other details added that the Chinese phone maker initiated a small-scale production of its alleged 5nm chip. But the latest information has questioned all previous claims.

It further indicates that the Huawei Mate 70 series will likely use a new Kirin chip but based on a 7nm process. Perhaps the company has to work more on producing a 5nm chip technology and we can expect it to arrive by the next or forthcoming years.

Rumor of next Kirin outperforming Snapdragon 8 Gen 1 seems fake (Image Credits: MyplaceMyworld/X)

A major reason behind Huawei being backward in the chip race is the use of outdated chip equipment. Following the tough U.S. export trade restrictions, the company cannot obtain advanced chipmaking tools from the foreign market that help in the 5nm making.

The next reason could be expenses. As per a report, SMIC 5nm process expected to be 50% more expensive than TSMC, despite using the same lithography equipment. It is so because SMIC still has a shortage of EUV machines. On the flip side, outdated machinery leads to higher production costs with lower yield rates.

Note that the current rumor rejection fits accurately with Huawei’s statement. During a conference, Zhang Pingan – the Executive Director of Huawei said that the company will focus on resolving 7nm issues rather than moving towards a new technology.

Huawei says that the lack of innovative chips is not the problem until the company knows how to enhance a chip’s capabilities. Thus, the Mate 70 series could deliver improved and upgraded performance over its predecessors, if not to the level of Snapdragon 8 Gen 1/2/3 chipsets.

[Source – MyplaceMyworld/X]

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Chosun.biz – a Korean business daily channel highlighted that a low yield rate at SMIC has badly affected Huawei AI chip production. The report adds that four out of five processors have seemed to be defective at the SMIC foundry in recent times.

Huawei and SMIC are using stocked chipmaking equipment to build AI chipsets. It seems most machines are outdated and started failing. Since Huawei has been blacklisted by the U.S. years ago, it cannot access foreign chipmaking tools anymore.

SMIC had predicted 500,000 Ascend 910B chip units production this year. But the constant collapse of equipment has prevented the firm from achieving its goal.

The chipmaker is developing new 7nm process chips with modified DUV (Deep UltraViolet) machines. The equipment belongs to the time before the U.S. sanctions.

Samsung, TSMC, and rivals, on the other hand, are taking the help of EUV (Extreme UltraViolet) equipment for chip manufacturing. Unlike DUV which takes 34 steps in processing, EUV takes fewer steps (say 9 steps) to complete the processor fabrication.

Huawei facing challenges in Ascend AI chip production (Image Credits: Huawei)

EUV is beneficial as it reduces production costs, defect rates, as well as frequent chances of failure. Despite several merits, Huawei and its chipmakers cannot switch to this equipment due to tough U.S. trade export controls.

The report further reveals that SMIC doesn’t have enough engineers for the management and maintenance of chip machinery. Following the U.S. sanctions, foreign goods suppliers pulled their hands from offering services to SMIC or other Chinese companies.

Some previous rumors claimed that Huawei is silently working on more powerful AI chips (Ascend 910C). These chips were said to come into the real world around September, based on a 5nm process. But the series of problems cast doubt on the alleged achievements.

Huawei AI chips are in high demand in the Chinese market. Many native companies have turned themselves to Ascend chipsets rather than choosing Nvidia A100 processors. Tests have shown that the former chip is more efficient than the U.S.-made processor.

However, the question is how Huawei will meet its partners and other companies’ requirements with the ongoing AI chip production challenges. We will keep you posted with the latest revelations on this matter.

Huawei facing challenges in Ascend AI chip production (Image Credits: Huawei)

(Via 1 2)

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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)

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X tipster @jasonwill101 states that the Huawei 5nm chip completed the tape-out process. This is said to be the final stage in the design phase of chip manufacturing.

Tape-out process generally includes finalizing of design. A firm creates a file with the chip’s layout description and sends it to the foundry to begin the chipset production.

As per the latest rumor, Huawei has successfully achieved the tape-out process for its alleged 5nm chip, and small-scale production of this processor could be in progress. Although the statement contradicts what the tech giant has said earlier.

At a recently held conference, Huawei executive director Zhang Pingan said that the company is currently focusing on resolving the 7nm chip issues. There are no plans for 3nm and 5nm processors for the moment as China lacks advanced equipment.

Huawei 5nm chip small-scale production already in progress, says a rumor (Image Credits: JasonWill/X)

Zhang mentioned that the U.S. sanction is a major reason why Huawei is running behind in chip production race compared to rivals. Pricing is another factor, which tends to be 50% more expensive under SMIC than TSMC with the same chip-making tools.

Rumors so far…

It’s not the first time that the Huawei 5nm chip development surfaced online. An early report said that SMIC has laid new chip manufacturing lines in Shanghai to initiate the mass production of Huawei’s new and powerful processors.

The chipmaker again appeared in rumors to make the 5nm process tech without requiring any advanced equipment. However, neither Huawei nor SMIC has confirmed any news so far. Thus let’s take the latest rumor with a grain of salt.

Despite chip-making challenges and U.S. export trade controls, Huawei is looking forward to gradual growth in semiconductor development. If not now, the progress of Huawei’s 5nm chip could be visible in the time ahead.

Huawei HiSilicon chip (Image Credits: HiSilicon)

(Source – JasonWill/X)

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