Huawei may launch mid-range 5G phone; chip breakthrough poses questions for US - report
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Huawei Technologies may launch a mid-range 5G phone as soon as October, Reuters reported citing Chinese news outlet IT Times.
The move could be another sign that the Chinese tech giant is overcoming U.S. sanctions. The Chinese company once was in race with Apple (NASDAQ:AAPL) and Samsung (OTCPK:SSNLF) to be the world's biggest handset maker until U.S. restrictions, starting in 2019, began to curb its access to chip manufacturing tools needed for producing its most advanced models.
The company may launch a 5G version of its mid-ranged Nova around October or November, the report added IT Times citing industrial supply chain sources.
At the end of August, Huawei quietly launched its new phone, Mate 60 Pro. The company did not provide information on the power of the chip inside but people speculated that it could be using a 5G capable chip.
The chip â made by China's Semiconductor Manufacturing International (OTCQX:SIUIF) â has ignited concern in the U.S. and raised questions about how it was possible, without the company being able to access critical technologies, according to a report from CNBC.
There is also scrutiny on whether the process being used to manufacture these new chips is efficient enough on a large scale to sustain a comeback for Huawei.
In addition to Huawei, SIUIF is on a U.S. trade blacklist called the Entity List. Companies on this list are restricted from purchasing American technology. But Semiconductor Manufacturing International's technology is seen generations behind compared to companies like Taiwan Semiconductor Manufacturing (TSM), the report added.
Apple is facing several issues in China, with geopolitical risks mounting and the economy still not growing as many expect. However, the biggest challenge of all, as per analysts, could be the resurgent Huawei following the major semiconductor breakthrough.
The semiconductor has been made using a 7-nanometer process by Semiconductor Manufacturing International, the CNBC report added citing an analysis of Mate 60 Pro conducted by software company TechInsights.
The 7nm process is seen as highly-advanced but it is not the latest technology. For years, SIUIF struggled to manufacture 7nm chips, in part, because the company could not access an expensive piece of kit called an extreme ultraviolet, or EUV, lithography machine made by Dutch company ASML (ASML) (OTCPK:ASMLF). ASML has been restricted by its government from sending these machines to China, according to the report.
However, it seems Semiconductor Manufacturing International has been able to make the chip without access to these technologies, the report added.
Earlier this month, the Financial Times
reported that the U.S. government is seeking detailed information on Huawei's latest flagship smartphone. Jake Sullivan, U.S. national security adviser, said that the U.S. needed to get "more information" on the precise "character and composition" of the chip powering Mate 60 Pro.

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