China’s Tech Ambitions Stalled by US Sanctions
Huawei’s New Laptop Reveals Challenges in Chip Development
Recent developments highlight the ongoing impact of US restrictions on China’s tech sector. Huawei’s newest foldable laptop utilizes older chip technology, underscoring the difficulties faced in accessing advanced semiconductor manufacturing capabilities. This situation emphasizes the complex geopolitical dynamics at play.
US Sanctions Hamper Chinese Chip Advancement
Huawei’s new MateBook Fold, launched in May, is powered by a 7-nanometer chip from Semiconductor Manufacturing International Corp. (SMIC). This indicates China’s reliance on older technology due to US sanctions, according to Bloomberg, citing TechInsights. This chip uses the same 7nm process as the Mate 60 Pro, which surprised US officials in 2023. Meanwhile, Taiwan Semiconductor Manufacturing Co. (TSMC) is preparing to mass-produce 2nm chips this year.
China’s tech self-reliance push is evident in the HarmonyOS-based foldable notebook. However, access to cutting-edge chipmaking tools remains a significant hurdle, with ASML Holding NV restricted from selling advanced lithography machines to Chinese firms. TechInsights stated, “This likely means that SMIC has not yet achieved a 5nm-equivalent node that can be produced at scale,” underscoring the impact of US tech controls.
The AI Arms Race
The US views China as a major competitor in artificial intelligence. The emergence of DeepSeek earlier this year sent shock waves through US tech companies, wiping billions from their valuations. Washington is preventing Chinese companies from acquiring high-end AI chips from **Nvidia**, citing national security. Beijing has placed its hopes on **Huawei** and **SMIC** for advanced chipmaking.
Despite **Huawei’s** 7nm chip debut in 2023, progress has stalled. US export controls limit **Huawei** to producing only 200,000 Ascend AI chips in 2025, says a Bloomberg report. **Jensen Huang**, **Nvidia’s** CEO, worries that **Huawei** could dominate the Chinese AI chip market if US export restrictions continue. According to the Semiconductor Industry Association, global semiconductor sales reached $527.2 billion in 2023, a decrease of 8.2% compared to 2022 (Semiconductor Industry Association).
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