Visitors check out Huawei cell phones at an expo in Shanghai in June. [PHOTO/CHINA DAILY]
Share costs of Chinese semiconductor firms surged on Wednesday as a chip breakthrough in Huawei Technologies” new cellphone demonstrated the homegrown business’s resilience and innovation prowess amid restrictions by the United States authorities, consultants stated.
Though hurdles stay within the path to catching up with superior international counterparts, Huawei’s feat has given its home friends the boldness to deal with technological bottlenecks and the US’ curbs concentrating on China will fail finally, the consultants added.
On Wednesday, 69 chip-concept stocks rose by greater than 5 p.c, based on Shanghai-based market tracker Wind Info. For occasion, Foshan Blue Rocket Electronics, a chip packaging firm listed in Shenzhen, noticed its shares rise by the utmost day by day restrict of 10 p.c for the second consecutive day.
Share costs of firms related to Huawei’s provide chains have additionally skyrocketed. The Shenzhen-listed firm Dongguan Chitwing Technology noticed its shares surge by the day by day restrict of 10 p.c for the sixth consecutive day on Wednesday. The firm reportedly works with Huawei within the precision machining sector.
The rise got here after Huawei’s newest cellphone — the Mate 60 Pro — triggered heated discussions worldwide after its launch final week. In China, shoppers are ready in line to purchase the most recent smartphone from Huawei’s offline shops.
TechInsights, an Ottawa-based info platform on the semiconductor business, stated in a report that it had analyzed the new cellphone and located proof of a made-in-China design and using a 7-nanometer expertise that could be a milestone for the Chinese chip business.
Huawei has not disclosed any technical particulars concerning the chip utilized in its new cellphone, and it’s not instantly clear which firm manufactured the chip for Huawei.
Since 2019, the US authorities has restricted Huawei’s entry to chip-making instruments important for producing probably the most superior cellular handset fashions.
Dan Hutcheson, vice-chair of TechInsights, stated the invention exhibits the technical progress China’s semiconductor business has made regardless of US-led chip export controls.
“The problem of this achievement additionally exhibits the resilience of the nation’s chip-related technological skill. At the identical time, it’s a nice geopolitical problem to the international locations who’ve sought to limit its entry to important manufacturing applied sciences,” Hutcheson stated.
Lyu Tingjie, a professor on the Beijing University of Posts and Telecommunication, stated from all of the movies and evaluation of Huawei’s new telephones, it may be seen that the new chip’s design, manufacturing, testing and packaging have virtually solely been accomplished by Chinese mainland firms, which is a breakthrough for the business. “It is a step from zero to at least one,” Lyu added.
However, there may be nonetheless a giant hole between Chinese firms and their superior international counterparts. Apple’s new cellphone iPhone 15, which is scheduled to be launched subsequent week, will reportedly characteristic 3-nanometer chips, which is about two generations forward of Huawei’s 7-nanometer chip, he added.
“It is value noting that Huawei has made important progress in controlling the standard of superior manufacturing processes. If the speed of non-conforming merchandise is just too excessive, the price will likely be too massive to essentially commercialize the expertise and put it in lots of telephones, ” Lyu stated.
Xiang Ligang, director-general of the Information Consumption Alliance, a telecom business affiliation, stated that the breakthrough, which comes amid Washington’s more and more tighter chip export controls towards China, has given the home chip business a shot within the arm.
“It will inspire Chinese firms to double down on indigenous innovation and pool extra sources into R&D,” Xiang stated.
He added that the US curbs concentrating on China’s expertise growth will fail in the long run and backfire.
According to media outlet wallstreetcn.com, citing sources from the availability chain, Huawei has raised the cargo goal for Mate 60 Pro telephones to about 15 to 17 million models. Huawei didn’t reply to media requests for feedback on the report.
Pan Helin, co-director of the Digital Economy and Financial Innovation Research Center at Zhejiang University’s International Business School, stated that customers’ enthusiasm towards the cellphone confirmed their excessive expectations of the Chinese chip business.
https://www.chinadaily.com.cn/a/202309/06/WS64f89940a310d2dce4bb4510.html
