Huawei upbeat on Chinese chip industry

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The sector will thrive through US sanctions to become more self-reliant, tech company boss claims

The US government’s tightening tech-export restrictions on China could foster the development of the nation’s domestic chip industry, Huawei’s rotating chairman Eric Xu stated during a press conference on Friday, as cited by CNBC.

“I believe China’s semiconductor industry will not sit idly by, but take efforts around … self-strengthening and self-reliance,” Xu reportedly said, adding: “For Huawei, we will render our support to all such self-saving, self-strengthening and self-reliance efforts of the Chinese semiconductor industry.”

His comments come as Chinese tech giant Huawei Technologies has labored under the American export restrictions on items for 5G and other technologies it has been subjected-to for several years. Washington has recently indicated that it was considering not granting any export licenses to American companies such as Qualcomm and Intel, which produce chips for smartphones and other devices.

Huawei was placed on a US trade blacklist in 2019, with most American suppliers barred from shipping goods and technology to the company unless they were granted licenses. The measure is aimed at cutting off the Chinese company’s ability to buy or design the semiconductor chips that power most of its products.

“I believe China’s semiconductor industry will get reborn under such sanctions and realize a very strong and self-reliant industry,” Xu stressed

He also confirmed reports that Huawei and other domestic firms have jointly created the electronic chip-design tools needed to make semiconductors sized at 14 nanometers and above. According to Xu, those tools will be verified this year, which would allow them to be put into use.

Tensions between the US and China, the world’s two largest economies, have been on the rise as they compete for domination in key technology areas, including semiconductors. Microchips are vital for everything from smartphones and self-driving cars to advanced computing and weapons manufacturing.

Washington has been urging its allies to curb tech exports to China as well, with Europe’s biggest producer of advanced chipmaking technology, the Netherlands, having joined the United States in its escalating standoff with Beijing. On Friday, Japan announced plans to restrict semiconductor equipment exports, while not naming China, aligning with the curbs.

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