Huawei's Semiconductor Struggles? Founder Calls Out Own Chips' Shortcomings
Huawei CEO offers unfavorable remarks on company's in-house semiconductors.
Huawei's technological prowess in the semiconductor industry is under the microscope, thanks to the candid remarks made by its founder, Ren Zhengfei. In a frank interview with the state-run "People's Daily," Ren admitted that Huawei's individual chips are "lagging" by a full generation compared to their US counterparts.
As high-stakes trade talks between China and the US unfold in London, Ren's comments are no doubt adding spice to the proceedings. Negotiators have been discussing the elimination of trade barriers since Monday.
Ren insists that Huawei is one among many Chinese companies working on chips, and they're all doing it pretty well. He defends against the US' allegedly overblown image of Huawei, stating that they're merely an active participant in a very competitive field.
Nvidia's Rapid Growth Despite China Export Ban
Huawei has faced US sanctions for a couple of years now, yet its revenues have experienced a near 70 percent surge. American restrictions on chip exports to China have, ironically, made Huawei a formidable competitor. Limited access to cutting-edge AI chips from Nvidia, which US regulations have prevented, has created a path for Huawei to carve out market share.
Bundle Chips to Compensate for Weaknesses
The publication of Ren's interview coincided with trade talks between the US and China, highlighting a stark reality. Both countries are grappling with issues like China's export controls on rare earths and the US' desire for a relaxation in these controls. Easing of US trade restrictions, such as in the computer chip and aircraft components sectors where China is heavily dependent on foreign technology, could be on the table in exchange.
Ren sheds light on Huawei's strategy to bridge the gap in its chip technology. By connecting multiple chips to create a powerful computing cluster, Huawei aims to compensate for the drawbacks of individual chips.
Sources: ntv.de, chr/dpa
- Huawei
- Semiconductor Industry
- Chip Manufacturers
- Sanctions
- Nvidia
- In the face of Huawei's technological struggles in the semiconductor industry, the company has been exploring measures to compensate for weaknesses in individual chips, such as bundling multiple chips to create a powerful computing cluster.
- As Huawei's revenues have experienced a near 70 percent surge despite US sanctions and the export ban on chip sales, the company has adapted to the situation, with limited access to Nvidia's AI chips driving Huawei to carve out market share in a highly competitive field.
