Tag: US sanctions

  • Should Nvidia Be Concerned About Huawei’s Rising AI Chips?

    Should Nvidia Be Concerned About Huawei’s Rising AI Chips?

    Huawei is currently testing its new AI chip, the Ascend 910C, with potential clients in China. This chip is designed to serve as a robust alternative to Nvidia’s top-tier GPUs, particularly following US restrictions that have limited Nvidia’s sales in China. Samples of the Ascend 910C have been provided to major server companies in China for testing and hardware setup.

    Upgraded Technology

    The Ascend 910C is an enhanced version of Huawei’s Ascend 910B chip, which has already been utilized in various sectors within China as a substitute for Nvidia’s A100 chip, particularly in AI training applications.

    Consequences of US Sanctions on Nvidia

    Since August 2022, US sanctions have barred Nvidia from selling its A100 and H100 GPUs to China. In response, Nvidia created modified versions, including the A800 and H800; however, these too faced additional export restrictions in 2023. Despite these challenges, Nvidia continues to be a significant player in China’s AI market, introducing new products such as the H20, L20, and L2 GPUs. The H20 chip is anticipated to generate substantial revenue in China, with expected sales reaching US$12 billion in 2024, despite previous low demand.expected sales reaching US$12 billion

    Huawei’s Expanding Role in China

    The US sanctions imposed on Nvidia have opened doors for Huawei to enhance its AI infrastructure and computing capabilities in China. Eric Xu Zhijun, Huawei’s rotating chairman, highlighted that the company has established two computing divisions over the past five years to bolster the domestic AI sector. This strategic move has positioned Huawei as a formidable competitor in the AI chip industry.

    While Huawei’s AI chips, including the Ascend 910C, show significant promise, the company does encounter challenges. Huawei generally packages its AI chips with additional services, such as network and storage solutions, which might dissuade some potential clients. Moreover, many of Huawei’s AI chips currently in use are still the older 910B models.

    As the competition between Huawei and Nvidia escalates, Huawei’s ongoing advancements in AI technology may enable it to become a pivotal player in China’s AI chip market, especially as it strives for greater self-sufficiency in semiconductor manufacturing.

    Tags: , ,
  • Huawei Pura 70: 33 China-made Components, Highest for the Brand

    Huawei Pura 70: 33 China-made Components, Highest for the Brand

    While the initial reports suggesting that Huawei Pura 70 phones have 90% of their components sourced from Chinese suppliers were inaccurate, TechInsight’s latest analysis points out that these phones indeed boast a notable quantity of locally sourced semiconductors.

    Significant Local Sourcing

    TechInsights' analysis indicates that a majority of the components in the Pura 70 series are of Chinese origin. The base model of the Pura 70 series exhibits the highest dependency on Chinese parts, with 33 out of 69 components sourced domestically, as opposed to just five from non-Chinese suppliers.

    The Pura 70 Ultra stands out for using memory exclusively from Yangtze Memory Technologies Corporation (YMTC), which is a leading NAND memory producer in China and is currently under US sanctions.

    “The ratio of Chinese-procured components was higher in the standard Pura 70 than in the Pro Plus model,” stated Stacy Wegner, an analyst at TechInsights.

    HiSilicon Kirin Chips and US Sanctions

    An earlier TechInsights analysis disclosed that the HiSilicon Kirin chips powering the Pura 70 series are produced by Semiconductor Manufacturing International Corporation (SMIC), China’s largest chipmaker. This aligns with the production process used for Mate 60 chips, all employing the same 7-nanometer technology.

    Huawei’s shift towards reduced reliance on foreign manufacturers is a notable achievement for the company, especially given the stringent restrictions imposed by the US.

    Recently, the US revoked chip export licenses for Huawei from Qualcomm and Intel, further constraining access to these products. However, analysts suggest that this move will have a minimal effect on Huawei’s operations, citing the company’s existing capabilities in producing 4G and 5G chipsets for various phone models.

    Future Outlook for Huawei

    “We don’t expect the revoked licenses to significantly affect Huawei’s smartphone business in 2024,” commented Linda Sui, a senior analyst at TechInsights.

    Tags: , ,
  • Samsung Keeps Aging Chip Manufacturing Equipment Amid US Concerns

    Samsung Keeps Aging Chip Manufacturing Equipment Amid US Concerns

    Samsung, a prominent global technology giant, boasts an extensive array of products that distinguish it from its competitors. Among its offerings are smartphones, tablets, headphones, televisions, and robot vacuum cleaners. Additionally, the South Korean company is involved in the production of screens, batteries, and semiconductor chips.

    Samsung's Diverse Product Range

    This broad spectrum of products enables Samsung to cater to a wide range of consumers and businesses similar to Apple. However, recent reports indicate that Samsung is holding onto outdated chip-making equipment, a move believed to be linked to concerns surrounding potential repercussions from US sanctions.

    Concerns Over US Sanctions Prompt Samsung's Decision

    Traditionally, tech firms prioritize sustainability and resource efficiency by upgrading their production lines with newer equipment and selling off older machinery. This practice not only facilitates factory updates but also maximizes the utilization of existing assets. Despite this norm, companies like Samsung and SK Hynix have opted to retain their old chip-making equipment amid apprehensions about encountering issues with the United States.

    The primary rationale behind this strategic shift is the fear that these components could inadvertently find their way to countries such as Russia and China, which are under US embargoes. While both companies exercise caution, there have been instances where their products have ended up in restricted markets, as evidenced by SK Hynix chips used in the Huawei Mate 60 series causing complications a few months back, prompting an official response from the company.

    Balancing Risk Amidst Changing Political Landscapes

    Although there are no explicit legal restrictions on products supplied to valid buyers, the approaching presidential election has induced a sense of caution among manufacturers who are increasingly averse to taking any chances. This scenario presents unique challenges as some manufacturers are compelled to invest significant sums in storing outdated equipment, while companies like Huawei face potential setbacks in the competitive landscape if they are unable to access cutting-edge technologies.

    Tags: , ,
  • Despite sanctions, China’s semiconductor industry exceeds expectations.

    Despite sanctions, China’s semiconductor industry exceeds expectations.

    China Semiconductor Industry Surpasses Expectations in 2023

    China semiconductor industry experienced remarkable growth in 2023, defying expectations and achieving impressive results amidst global challenges. According to data from China’s National Bureau of Statistics (NBS), the country’s integrated circuit (IC) output surged by 6.9%, reaching a record 351.4 billion ICs, up from 324.2 billion in 2022. This unexpected success highlights the industry’s resilience and adaptability in navigating a complex landscape.

    Resilient Response to Post-Pandemic Economic Recovery

    One of the key factors contributing to this growth was China’s resilient response to post-pandemic economic recovery. Despite initial concerns, the semiconductor sector demonstrated remarkable strength, adapting to evolving market dynamics. The 6.9% increase in IC output underscores the industry’s ability to weather challenges and capitalize on emerging opportunities.

    Challenges Faced by Leading Foundries

    Semiconductor Manufacturing International Corp (SMIC), China’s leading foundry, faced challenges in 2023, reporting a 24% decline in wafer shipments and a drop in capacity utilization to 74%. This decline was primarily attributed to reduced demand from key sectors such as smartphones and automobiles. Hua Hong Semiconductor, the second-largest foundry in China, also experienced a temporary setback with a 0.79% year-on-year drop in revenue and a dip in capacity utilization in the third quarter.

    Resilience and Adaptability in the Face of Adversity

    Despite these specific challenges, China semiconductor industry demonstrated resilience and adaptability in the face of adversity. Analysts predict a positive trajectory for the industry, with signs of recovery expected in the second quarter of 2024. The Semiconductor foundry capacity utilization rates, which experienced downward pressure, are anticipated to rebound, bringing the industry back to a healthier equilibrium.

    Trade Statistics and Global Tensions

    Trade statistics for 2023 revealed mixed results, with China exporting 267.8 billion ICs worth US$135.9 billion, slightly lower in volume but demonstrating robust performance. Import figures, while lower in volume and value, did not significantly hinder the overall growth momentum of the industry.

    Global tensions, particularly between the US and China, posed challenges, with export bans and trade controls on certain semiconductor types affecting China’s access to advanced technologies. However, the industry took proactive measures and focused on self-sufficiency to mitigate potential disruptions. China’s increased semiconductor equipment imports, including a 93% surge in chip-making equipment imports in Q3 2023, reflected the nation’s commitment to reducing dependence on external sources. Initiatives like “Made in China 2025,” tax exemptions, and substantial investments underscored China’s dedication to achieving semiconductor self-sufficiency.

    Positive Outlook for the Future

    China semiconductor industry not only met but exceeded expectations in 2023, showcasing robust growth and resilience in the face of global challenges. As the industry anticipates further recovery in 2024, the narrative shifts towards a positive outlook, emphasizing the sector’s ability to thrive in a rapidly evolving landscape.

    Tags: , ,
  • Huawei defies US sanctions, set to achieve nearly $100 billion revenue by 2023

    Huawei defies US sanctions, set to achieve nearly $100 billion revenue by 2023

    In his New Year’s speech, Huawei‘s rotating chairman, Hu Houkun, delivered a message of resilience and optimism. After several years of navigating a challenging global landscape, Huawei operations have “basically returned to normal,” with sales revenue expected to exceed CNY 700 billion (USD 99 billion) in 2023. This achievement speaks volumes about the company’s unwavering commitment to innovation and customer service.

    Huawei’s Success in 2023

    Hu Houkun also highlighted several key areas of success for Huawei in 2023:

    Stable ICT infrastructure business

    Huawei’s core business remained strong, providing a solid foundation for the company’s overall growth.

    Terminal business exceeding expectations

    Despite ongoing challenges, Huawei’s smartphone and other consumer electronics businesses performed better than anticipated.

    Digital energy and cloud business achieving good growth

    Huawei’s investments in renewable energy and cloud computing solutions are paying off, with both sectors experiencing significant growth.

    Significantly improved competitiveness of smart car solutions

    Huawei is making strides in the burgeoning electric vehicle market, with its smart car solutions becoming increasingly competitive.

    Houkun further expressed his deep gratitude to all those who have contributed to Huawei’s success, including customers, partners, employees, and their families. He emphasized that it is the “common belief” that has allowed Huawei to weather the storms and move forward.

    While acknowledging the ongoing challenges posed by geopolitical uncertainties and economic fluctuations, Hu Houkun also outlined Huawei’s vision for the future. He emphasized the company’s commitment to digitalization, intelligence, and low-carbonization as key drivers of growth.

    Key Focus Areas for Huawei 2024

    Hu Houkun outlined several key focus areas for Huawei in 2024. Huawei will continue to invest in cutting-edge technologies, such as large language models and high-performance computing, to fuel innovation and growth.

    Huawei is aiming to establish a world-class computing infrastructure to support its various digital initiatives. Ensuring the quality and security of its products and services will also remain a top priority for Huawei.

    Moreover, Huawei will continue to foster a collaborative ecosystem by partnering with other companies and organizations. It will further streamline its organizational structure and empower employees to take ownership of their work. Most importantly, the company will prioritize the development of its leaders to ensure they are equipped to face the challenges of the future.

    Hu Houkun concluded his speech with a message of hope and optimism. He expressed his confidence in Huawei’s ability to overcome any obstacle and achieve even greater success in the years to come. He believes that “people need precipitation and accumulation in order to become stronger,” and that Huawei’s past experiences have made it “down-to-earth” and prepared to “move forward steadily to win greater victory.”

    Tags: , ,
  • Chinese Startup Moore Threads’ AI Center Challenges US Sanctions

    Chinese Startup Moore Threads’ AI Center Challenges US Sanctions

    Moore Threads Introduces Cutting-Edge Computing Center in Beijing

    Despite encountering obstacles related to US sanctions, Moore Threads Intelligent Technology, a startup based in Beijing known for its expertise in GPUs, has unveiled the KUAE Intelligent Computing Centre.

    Overcoming Adversities and Reallocating Assets

    The journey for Moore Threads has been marked by hurdles stemming from US sanctions, which have impeded their access to manufacturing and software resources. Nevertheless, the company has flexed its adaptability, undergoing layoffs to reassess its assets and concentrating on the advancement of GPUs.

    Contributing to China’s Autonomous Chip Production

    The introduction of the new GPU and computing facility plays a pivotal role in China’s pursuit of self-reliance in chip manufacturing, a critical objective against the backdrop of geopolitical strains. Moore Threads has successfully secured a noteworthy sum exceeding US$525 million in funding, signaling unwavering support from investors who share its forward-looking vision.

    Strategically Aligned with Nvidia’s CUDA Framework

    The operational foundation of the KUAE computing center seamlessly integrates with Nvidia’s CUDA platform, ensuring harmonious coexistence with prevailing technologies. This strategic alignment echoes Nvidia’s dominant foothold in the GPU market, thus mitigating the ramifications of US export restrictions.

    Navigating and Transforming the Corporate Landscape

    Enterprises such as Moore Threads are swiftly adjusting and reshaping the corporate terrain, showcasing their resilience in times of adversity. Their capacity to innovate amidst challenges reflects the overarching trend within the tech domain characterized by a blend of creativity and fortitude.

    Tags: , ,
  • Amidst US sanctions, Huawei ventures into automotive partnerships with Audi and Mercedes

    Amidst US sanctions, Huawei ventures into automotive partnerships with Audi and Mercedes

    Huawei Explores Partnerships with German Car Manufacturers for EV and Smart Car Software Sectors

    Chinese tech giant Huawei is actively seeking partnerships with renowned car manufacturers in a strategic move to overcome the obstacles created by US-imposed sanctions. The company recently held closed-door meetings with Audi and Mercedes, the two largest German automotive companies, with the aim of exploring potential joint ventures or partnerships in the electric vehicle (EV) and smart car software sectors.

    Huawei is considering spinning off its Intelligent Automotive Solution (IAS) business unit, highlighting its ambition to become a leading supplier of software and components for smart EVs. The IAS business unit is estimated to be valued between $28 billion and $35 billion.

    Mercedes’ Limited Interest in Huawei’s Smart Car Software and Components Firm

    Mercedes, one of the automotive giants approached by Huawei, reportedly offered to acquire a 3% to 5% stake in Huawei’s smart car software and components firm. However, the German automaker showed limited interest, as it prioritizes retaining control over software and maintaining its premium brand positioning.

    Potential Collaboration with Audi on Autonomous Driving Technologies

    Audi’s level of interest in Huawei’s proposal remains uncertain, but reports suggest the possibility of collaboration in the development of autonomous driving technologies for Audi vehicles in the Chinese market from 2025 onwards. This aligns with the broader trend of global automakers seeking partnerships with Chinese companies to cater to the tech-savvy Chinese consumer base.

    Huawei’s Focus on Partnerships with Electric Car Makers and Established Automakers

    As Huawei faces the challenges posed by US sanctions, the company recognizes the need to secure its position as a primary supplier of intelligent solutions for European, US, and Japanese companies. Richard Yu, who oversees Huawei’s smart car business, acknowledges these challenges and emphasizes the company’s focus on forming partnerships with both smaller electric car makers and established automakers.

    Collaboration Trend in the Competitive Chinese Automotive Market

    While Mercedes and Audi declined to comment on the speculation surrounding the discussions, Huawei has also remained silent on the matter. Industry experts believe that Huawei’s outreach to global automakers reflects a broader trend in the industry, where collaboration is key to introducing advanced features in the highly competitive Chinese automotive market.

    Diversified Approach: Partnerships with Established Automakers and Smaller Players

    As Huawei navigates the challenges posed by US sanctions, its strategy involves partnerships with established automakers as well as collaborations with smaller players like Series Group. Notably, Changan Automobile plans to invest in Huawei’s smart car business, potentially acquiring up to 40% stake. This diversified approach showcases Huawei’s commitment to securing investments and partnerships in the automotive sector.

    In conclusion, Huawei’s pursuit of partnerships with reputable car manufacturers such as Audi and Mercedes underscores its determination to strengthen its presence in the EV and smart car software sectors. As the company faces the impact of US sanctions, these collaborations and investments are crucial for Huawei to secure its position as a leading supplier of intelligent solutions in the global automotive industry.

    Tags: , ,
  • Despite US sanctions, China’s Huawei launches latest 5nm Kirin 9006C chip

    Despite US sanctions, China’s Huawei launches latest 5nm Kirin 9006C chip

    Despite facing crippling US sanctions, Chinese tech giant Huawei has managed to release a new 5nm chip called the Kirin 9006C SoC. This is a significant development following the unveiling of the 7nm Kirin 9000S chip just a few months ago, which is used in the latest Mate 60 series smartphones.

    Impact of US sanctions on China’s tech sector

    The US sanctions have had a severe impact on China’s tech sector, particularly on homegrown brands like Huawei. These sanctions have limited access to critical semiconductors and silicons from American companies such as Qualcomm, affecting numerous Chinese firms.

    Breakthrough with the Kirin 9000S

    Earlier this year, Huawei achieved a breakthrough with the 7nm ARM processor, the Kirin 9000S. This processor, manufactured by SMIC (Semiconductor Manufacturing International Corporation), powers the Huawei Mate 60 and has shattered sales records in China. Despite not matching the latest offerings from Qualcomm or MediaTek, the Kirin 9000S is a remarkable advancement considering SMIC’s current hardware capabilities.

    Introducing the Kirin 9006C

    The release of the Kirin 9000S was not a one-off accomplishment. It marked the beginning of a series of chips designed to overcome the US sanctions. Huawei is now taking it a step further with the introduction of the Kirin 9006C SoC.

    Specifications of the Kirin 9006C

    The Kirin 9006C features eight ARM CPU cores, comprising four A77 and four A55 cores, with a maximum clock speed of 3.13GHz. While these specifications may not appear groundbreaking, the real highlight is the chip’s 5nm process node technology. This is a significant milestone achieved by Huawei despite the US sanctions. Similar to the Kirin 9000S, the Kirin 9006C is expected to be manufactured by SMIC.

    Future possibilities for the Kirin 9006C

    Currently, the Kirin 9006C can only be found in Huawei’s Qingyun L540 laptop. However, its potential extends far beyond that. There are rumors suggesting that Huawei will incorporate this powerful new 5nm Kirin chip into their upcoming P70 smartphone series, which is expected to be announced early next year.

    In conclusion, despite facing challenges due to US sanctions, Huawei has managed to defy expectations and release the Kirin 9006C, a 5nm chip that pushes the boundaries of technology. This achievement showcases Huawei’s determination to overcome obstacles and continue innovating in the tech industry.

    Tags: , ,