Chinese tech giant Huawei said on Monday that it has developed a new method for manufacturing semiconductors that could bypass restrictions imposed by the United States, which limit its access to state-of-the-art chip-making equipment.
These developments come amid escalating geopolitical tensions, after Washington warned that Huawei equipment could be used in espionage operations for the Chinese government, allegations the company denies.
Since 2019, the United States and its allies have imposed restrictions on Huawei's access to American components and technologies, including lithography equipment used in manufacturing the world's most advanced chips.
But Huawei's semiconductor division chief, He Tingbo, said on Monday that the company would be able to produce next-generation 1.4-nanometer chips by 2031.
In contrast, Taiwan's TSMC, a leader in the sector, had predicted it would be able to achieve the same level by 2028.
Advanced chips used to train and operate artificial intelligence systems are a key and sensitive element in the technology race between the United States and China.
The computing power of chips has evolved significantly over the past decades, as companies have sought to cram more and more microelectronic components into them.
Huawei's statements suggest that it may have bypassed the need for extreme ultraviolet (EUV) printing machines, which are essential for the mass production of chips with a resolution of 5 nanometers or less.
During a presentation at the International Symposium on Circuits and Systems (ISCAS) in Shanghai, he said: “Over the past six years, I have often been asked... how did you survive and return to the top?”
He explained that the new technology came as a result of a change in the way the chip industry has been historically perceived.
Moore's Law, formulated by Intel co-founder Gordon Moore, states that the number of transistors on a chip doubles every two years, resulting in either increased performance or a reduction in size.
But the company introduced what it calls the Tao Law of Expansion, or He Law, which focuses on improving the time it takes for chip elements to communicate with each other, rather than just reducing size.
Huawei says this approach overcomes a key challenge in Moore's Law, which Intel experts summarize as: You can make things smaller and smaller... until you can't.
He added that the US sanctions made these challenges arrive earlier and become more difficult for Huawei.
He said the solution proposed by the company is feasible and reasonably priced, adding that the performance of the new chip can fully compete with the other technological path.
Huawei plans to launch the next version of its Kirin chip next fall, which will be the first to rely entirely on the LogicFolding architecture built on this new principle.
George Chen, partner and head of digital practices at The Asia Group, said that the Tao Code reflects the company's ambition to lead the global chip race rather than just catch up.
He added that Huawei's intentions are clear even without launching a new product today, and its likely course of action will increase US concerns.
