Huawei’s New Laptop Adds to Evidence of Stalled Chip Advance

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(Bloomberg) — Huawei Technologies Co.’s latest computer product is powered by a chip manufactured using years-old technology, suggesting US sanctions are still preventing China from developing cutting-edge semiconductor technologies. 

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The processor in the MateBook Fold is built with domestic partner Semiconductor Manufacturing International Corp.’s 7-nanometer technology, according to Canada-based consultancy TechInsights, employing the same process technology adopted in the Mate 60 Pro that stunned US officials two years ago. Industry leader Taiwan Semiconductor Manufacturing Co. is expected to start mass producing 2nm chips, which is three generations ahead of 7nm, later this year. 

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The Shenzhen-based company’s new foldable notebook and tablet hybrid, released in May, runs on its self-developed operating system HarmonyOS. Huawei has gradually used more indigenous technologies and parts in its devices to align with Beijing’s policy to reduce reliance on the West, while trying to challenge the likes of Apple Inc. and Microsoft Corp. 

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China may still face significant challenges in securing next-generation chipmaking expertise after a yearslong, US-led multinational campaign cut off its access to advanced Western manufacturing equipment and technology. ASML Holding NV has been barred from selling its state-of-the-art extreme ultraviolet lithography machines required for making sophisticated AI chips to Chinese firms. 

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“This likely means that SMIC has not yet achieved a 5nm-equivalent node that can be produced at scale,” TechInsights said in a statement. “This news points to the fact that US-imposed technology controls are likely continuing to impact SMIC’s ability to catch up to current foundry leaders in more advanced nodes across chips for mobile, PCs and cloud/AI applications.”

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Huawei shocked US politicians when it first debuted the China-made 7nm chip in 2023, but it seems to have made little progress in improving its semiconductor capabilities since then. The Chinese company will be able to make just 200,000 of its Ascend AI chips in 2025 thanks to export controls, US Under Secretary of Commerce Jeffrey Kessler said at a congressional hearing earlier this month. 

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The US sees China as a key rival in the field of artificial intelligence, especially after DeepSeek burst onto the global stage at the beginning of 2025. In addition to efforts to prevent China from securing advanced semiconductor manufacturing equipment, Washington is blocking Chinese companies from acquiring Nvidia Corp.’s high-end AI chips for training, citing national security concerns. Beijing is now pinning its hopes on Huawei and SMIC when it comes to advanced chipmaking. 

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Huawei’s founder Ren Zhengfei has recently dismissed the impact from US tech curb on China. He told the Chinese Communist Party’s official newspaper People’s Daily in an interview that there’s no need to worry as domestic companies can adopt means like chip stacking to get results similar to those from the most cutting-edge semiconductors. 

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