Huawei to launch its best China-made phone chip next week: WSJ

Investing.com -- Huawei Technologies is set to release its most advanced domestically produced phone chip next week, demonstrating the company’s progress in chip manufacturing despite enduring U.S. sanctions, according to a report from The Wall Street Journal.

The report states that the chip will feature in select models of Huawei’s upcoming Mate 70 series smartphones, scheduled for release next week.

This launch is part of Huawei’s strategy to intensify competition with Apple (NASDAQ:AAPL ) in China’s lucrative high-end smartphone market, said the WSJ.

Since U.S. sanctions were imposed in 2019, Huawei has been excluded from accessing critical 5G-related technologies and Google’s Android services.

However, the company has sidestepped these restrictions through innovation, including developing its HarmonyOS Next (LON:NXT ) operating system. The Mate 70 series will run on this software, sources told the WSJ.

The Mate 70 builds on the success of last year’s Mate 60, which surprised many with its advanced features, including 5G-like communications and a chip manufactured domestically by Semiconductor Manufacturing International Corporation (SMIC).

While Huawei’s chips still lag behind Taiwan Semiconductor Manufacturing Company’s (TSMC) cutting-edge technology, the WSJ notes that they are closer to Apple’s than previously anticipated.

Huawei’s domestic market share rose from 8.6% in early 2023 to 15.3% in the third quarter of 2024. This growth is attributed to patriotic buying, superior camera features, and AI functionalities, according to the WSJ.

While Huawei faces manufacturing constraints and possible delays for Mate 70 orders, the WSJ highlights how the company continues to invest in its semiconductor supply chain, from lithography to assembly, aiming to bolster its technological independence.

U.S. officials remain concerned about Huawei’s advancements and are scrutinizing its ability to circumvent export controls, the WSJ reported.

Source: Investing.com