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Huawei's founder openly criticizes the company's own chip technology.

Are Nvidia pushing their limits?

Historically, Huawei has been subjected to significant economic restrictions by the United States.
Historically, Huawei has been subjected to significant economic restrictions by the United States.

Stepping Up the Game: Huawei's Chip Tech Challenge to Nvidia

Huawei's founder openly criticizes the company's own chip technology.

In the midst of talks between China and the US, Huawei founder Ren Zhengfei slashed his company's chip technology, stating it's a step behind the US counterparts. Despite the US inflating Huawei's superiority, Ren claimed there are numerous Chinese chip developers excelling in the field, with Huawei being one of them [5].

Amid these trade discussions, Huawei has amped up its chip development, causing worry among American competitors. The US chipmaker Nvidia recently voiced concerns about US regulations restricting shipments to China, leading to Huawei grasping a substantial market share [1].

Clustering for Strength

Ren's remarks surfaced during talks in London, where both delegations have been negotiating the removal of trade barriers since Monday. In an attempt to offset technical deficiencies, Huawei employs a strategy called clustering. This method involves combining multiple chips to amplify computing power [2].

The Semiconductor Battlefield

American concerns about China's control over rare earths mirror concerns from other countries. Favorable conditions could foster a relaxation in US trade restrictions, potentially easing restrictions on areas like computer chips or aircraft components, where China heavily depends on foreign technology [2].

Acknowledging Huawei's potential growth, Nvidia CEO Jensen Huang concedes that the company's technology remains a generation ahead of Huawei's, but cautions about the potential risks if US restrictions persist [3]. Huawei's Ascend series AI chips, while not as advanced as Nvidia's, can achieve similar results through methods like stacking and clustering [3].

Source: ntv.de, chr/dpa

  • Huawei
  • Semiconductor Industry
  • Chip Manufacturers
  • Sanctions
  • Nvidia

Enrichment Data:

Current Status of Huawei's Chip Technology

Recent reports show that Huawei's semiconductor subsidiary, HiSilicon, has made significant strides, with revenue doubling - a reflection of advancements in semiconductor development [1]. However, according to Huawei's founder, Ren Zhengfei, the company's semiconductor design prowess lags at least a generation behind that of Nvidia [5]. Despite this, Huawei plans to introduce an application processor based on a 3-nanometer process technology next year, potentially boosting its capabilities [4].

Comparison with US Counterparts

Despite Nvidia's current technological dominance, Huawei's advancements in AI technology could challenge Nvidia's market position if the US restrictions persist [3]. Jensen Huang's comments reveal both Nvidia's current technological edge and the potential risks for Nvidia should Huawei expand its semiconductor business [3].

Impact on the Semiconductor Industry

The ongoing tensions between the US and China over technology and trade have enormous implications for the semiconductor industry. The US tightening export controls on advanced chips was aimed at limiting China's access to high-tech semiconductors, due to concerns they could bolster China's military capabilities [2]. This scenario has incited Chinese companies like Huawei to development their own semiconductor capabilities to bypass these restrictions. Meanwhile, Nvidia, while holding a technological lead, remains vigilant about Huawei's growth and potential market expansion [3].

  1. To bolster its technical deficiencies, Huawei is employing a strategy called clustering, where multiple chips are combined to amplify computing power, as reported in the general-news.
  2. If US restrictions on chip shipments to China persist, Huawei's Ascend series AI chips, though not as advanced as Nvidia's, can still achieve similar results through methods like stacking and clustering, according to the enrichment data.
  3. In an effort to maintain its market share, Nvidia's CEO, Jensen Huang, acknowledges Huawei's potential growth in the vocational training sector, specifically in the semiconductor industry, but cautions about the risks should Huawei's business expansion continue unhindered, as detailed in the enrichment data.

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