Shanghai: Chinese technology giant Huawei Technologies has said it has found a new way to build advanced semiconductor chips despite ongoing restrictions imposed by the United States. The company claims its approach could allow it to compete with leading global chipmakers by 2031, potentially reshaping the race for artificial intelligence (AI) and smartphone processors.

The announcement comes amid continuing efforts by the US government to limit China’s access to cutting-edge semiconductor technology. Restrictions have included export controls on advanced chips and manufacturing equipment, particularly affecting companies such as Huawei.

US restrictions reshape global chip race

Over the past few years, Washington has imposed multiple rounds of sanctions targeting China’s semiconductor industry. These include restrictions on exports of advanced chips from companies like Nvidia and limitations on access to high-end chipmaking equipment.

Huawei itself was placed on a US trade blacklist in 2019, significantly affecting its ability to procure American technology. Broader controls introduced in 2022 further tightened access to advanced semiconductor manufacturing tools.

These measures have forced Chinese firms to rethink their strategies and develop alternative approaches to building advanced chips without relying on Western technologies.

New approach to chip design

At an event in Shanghai, Huawei outlined a new chip design strategy that differs from traditional semiconductor manufacturing methods used by industry leaders such as Intel, Taiwan Semiconductor Manufacturing Company and Samsung Electronics.

Instead of focusing solely on shrinking chip components to increase performance, Huawei said it is adopting a method that improves computing efficiency through architectural innovation.

The company’s approach involves stacking multiple layers of circuits within a single chip and reducing the distance data must travel between them. This design is intended to enhance speed and energy efficiency even without access to the most advanced manufacturing tools.

Huawei refers to this concept as the “Tau Scaling Law”, which it claims can deliver performance levels comparable to next-generation semiconductor nodes.

Targeting 1.4-nanometre performance

Huawei stated that its technology could eventually achieve transistor density similar to chips built using a 1.4-nanometre (nm) process, which is considered the next major milestone in semiconductor manufacturing.

Currently, leading chipmakers are working towards mass production of such chips using advanced lithography systems developed by ASML. However, due to US export controls, Huawei does not have access to these machines.

Despite this limitation, the company claims its alternative approach could deliver comparable performance without relying on the latest lithography technology.

“LogicFolding” and AI chip development

Huawei also revealed that its upcoming Kirin smartphone processors will feature a new architecture called “LogicFolding”. This design focuses on reducing internal wiring distances within chips, thereby improving processing speed and efficiency.

The company said it has already applied elements of its approach across 381 chip models over the past six years. It is also using similar techniques in the development of AI processors, although independent performance benchmarks have not yet been released.

According to He Tingbo, president of Huawei’s semiconductor division, the solution is both “feasible and affordable”, suggesting that the company is confident about scaling the technology.

Push for technological self-reliance

Huawei’s efforts are part of a broader push by China to achieve technological self-sufficiency, particularly in critical sectors such as semiconductors and artificial intelligence.

With limited access to global supply chains, Chinese companies have increasingly focused on domestic innovation and alternative engineering methods. Huawei has emerged as a key player in this strategy, investing heavily in research and development to reduce reliance on foreign technology.

The company’s progress is being closely watched, as it could influence the balance of power in the global semiconductor industry.

Uncertainty remains over claims

While Huawei’s announcement highlights an ambitious roadmap, experts note that the claims have yet to be independently verified. Achieving performance comparable to advanced semiconductor nodes without access to cutting-edge equipment remains a significant technical challenge.

Additionally, the global semiconductor industry is highly complex, and breakthroughs often require collaboration across multiple specialised domains, including materials science, manufacturing and design.

Conclusion

Huawei’s proposed chip design strategy signals a potential shift in how advanced processors could be developed under technological constraints. By focusing on architectural innovation rather than traditional scaling, the company aims to overcome barriers created by US restrictions.

However, whether this approach can truly match the performance of leading chipmakers remains to be seen. As geopolitical tensions continue to shape the semiconductor landscape, Huawei’s efforts could play a crucial role in defining the future of the global AI and chip industry.