In a stark juxtaposition to previous pronouncements, Huawei’s latest 5G smartphone releases symbolize China’s resilience against US trade sanctions. Once the leading smartphone manufacturer in China, Huawei has been navigating a labyrinth of intensified technology restrictions since 2020.
During Huawei Technologies’ annual conference in Shenzhen, Deputy Chairman Eric Xu Zhijun addressed inquiries regarding the company’s plans to introduce new 5G smartphones. To a vast audience comprising journalists, analysts, and clients, Xu stated, “If you’re anticipating a Huawei-made 5G smartphone, we must await approval from the US Department of Commerce. The green light for 5G chips is the precursor to any such production.” These remarks, made amidst Huawei’s tumultuous stand-off with the US, were echoed by the last 5G smartphone they had released – the Mate 40 series in October 2020.
Yet, the tides seemed to shift by late August when Huawei unexpectedly announced a pre-sale for its latest offering – the Mate 60 Pro 5G. This was quickly followed by another discreet online pre-sale for its elite Mate 60 Pro+ model.
Coinciding with this launch was US Commerce Secretary Gina Raimondo’s visit to China. Her trip led to the initiation of working groups aimed at promoting bilateral discourse, even as US trade restrictions lingered. However, the real point of contention was the revelation of Huawei’s new 5G handsets equipped with a novel CPU – identified by the Chinese website AnTuTu as the Kirin 9000s. The chip, a brainchild of Huawei’s HiSilicon unit, stirred debates about its origins, given the stringent US sanctions.
Initial investigations into the Mate 60 Pro hinted at the involvement of another US-sanctioned enterprise, the Semiconductor Manufacturing International Corp (SMIC) – mainland China’s premier contract chipmaker. This revelation triggered US National Security Adviser Jake Sullivan to delve deeper, questioning the chip’s origin in the face of prevailing technological access constraints.
However, both Huawei and SMIC remained reticent about the details of the system-on-a-chip (SoC) deployed in the Mate 60 Pro series. This silence did little to dampen the nationalistic pride flooding Chinese social media platforms. Many users saw these technological advancements as emblematic of China’s prowess in countering stringent US sanctions.
Emphasizing this sentiment, a prominent Weibo post by an influencer stated, “Huawei stands as a testament to survival and flourishing under US sanctions, making the world recognize China’s technological might.”
Huawei’s resurgence in the 5G domain, coupled with its homegrown processor, underscores the company’s tenacity to rebuild its stature after grappling with US-imposed trade challenges. This rebound not only marks a significant PR milestone for Huawei but also resonates with Meng Wanzhou’s celebrated return to China after her prolonged house arrest in Canada. Meng’s release from the extradition battle with the US was celebrated in mainland China as a significant triumph over US dominance.
Analysts have been keenly observing this revival. Jefferies equity analyst Edison Lee mentioned, “Huawei’s Mate 60 Pro, with its domestically produced 7-nanometre SoC, has garnered immense consumer interest, clocking sales of over 2 million units since its launch.” Further indications of this upswing include Huawei’s raised shipment targets and their new foldable model, the Mate X5, selling out promptly.
The implications of Huawei’s return to the high-end market segment, particularly concerning competitors like Apple’s iPhone 15 series and other Android flagships, remains a point of conjecture.
Huawei’s past is replete with challenges. Since the tightened tech sanctions in 2020, the company had to reconfigure its handset and telecom equipment production strategies. They replaced over 13,000 components and redesigned more than 4,000 circuit boards within three years, highlighting their adaptability to US-imposed constraints.
Recent insights into the Mate 60 Pro by Canadian research firm TechInsights have reignited speculations about SMIC’s involvement. If proven, producing the 7-nm chip would infringe upon US sanctions, which currently restrict China’s logic chip manufacturing to 14-nm. An interview with Minatake Mitchell Kashio, CEO of Tokyo-based research firm Fomalhaut Techno Solutions, added another layer to this debate. Based on their analysis, Kashio believes the Kirin 9000s CPU leverages SMIC’s 14-nm process, augmented by specific techniques to elevate its performance near that of a 7-nm processor.
As Huawei looks to the future, its journey through adversities remains a testament to its resilience and the larger narrative of China’s technological ascendance on the global stage.
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