The global semiconductor industry is facing new challenges because artificial intelligence and chip technology have become vital to both economic and national security needs. Semiconductors serve as the miniature components which drive the operation of smartphones and computers and vehicles and artificial intelligence systems.
The United States and China have turned control of advanced chip technology into their main point of conflict. Intel CEO Lip-Bu Tan has warned that Huawei could rebuild strong chip capabilities if the US does not remain cautious.
Speaking during Intel’s annual financial update earlier this month, Tan said he was surprised by how much progress Huawei has made despite nearly five years of strict US sanctions.
According to Tan, Huawei is quietly rebuilding its chip ecosystem. He said the Chinese tech giant employs more than 100 top-level CPU architects and continues to work around restrictions. Tan warned that without careful US policy, companies like Huawei could achieve major advances in the chipset industry within the next few years.
Before the restrictions, Huawei bought around $10 billion worth of chips each year from companies such as Samsung and SK Hynix. A Huawei official said the company now has no choice but to rely on domestic development.
Tan also pointed to Huawei’s open-source strategy, saying it could help China move faster while putting US firms at a disadvantage. Although Huawei cannot access advanced design tools from US and European firms, Tan said its engineers are finding ways to build missing capabilities.
The warning comes before Huawei’s product launch event in Madrid on February 26, which includes new smartwatches and a possible new Kirin chipset. Huawei has expanded its global operations by opening new research centres and increasing its workforce, which now exceeds 200000 employees worldwide.