TSMC, the world’s leading chip manufacturer, minimized concerns about Huawei’s recent progress in chip development during its shareholder meeting. Highlighting a technological disparity and US export limitations, TSMC executives expressed confidence in retaining their market leadership.
Chairman Mark Liu responded to a shareholder’s question about Huawei and other rivals, stating, “TSMC considers every competitor very carefully. We will always have competitors. But it has nothing to do with Huawei or not.” He downplayed the threat from Huawei, implying that both Huawei and China are significantly behind.
TSMC's Confidence
TSMC President Wei Zhejia also asserted that “it’s impossible” for Huawei to match their chip fabrication technology. This confidence stems from TSMC’s entrenched position at the cutting edge of the semiconductor industry.
Huawei faces significant hurdles due to US government restrictions that limit its access to advanced chipmaking equipment, impeding its ability to compete at the highest level. Consequently, while TSMC plans to initiate 2nm chip production by next year, Huawei is still dealing with 7nm processors, with speculations that their 5nm SoC might launch soon.
Huawei's Struggles
Blacklisted by the US in 2019, Huawei has attempted a resurgence with the Mate 60 Pro and its new Kirin 5G processors. However, their 7nm technology places them at a disadvantage in terms of performance and efficiency compared to the latest chips from other manufacturers.
While Huawei’s strides towards self-reliance are commendable, the technological gap and the constraints imposed by US sanctions remain significant obstacles. The question is whether any competitor, including Huawei, can bridge the gap and challenge TSMC’s dominance and strict export controls. Only time will reveal if a new contender can unseat the current leader in the chipmaking arena.
