| | FEBRUARY 202419a name by the US government, but it is generally believed that it will be affected by the new regulations.The Latest Sanctions Proved Advantageous to Some Chinese Domestic Chip MakersChina's domestic chip sector, which is said to lag behind that of the US, Taiwan, and South Korea by many years, may have benefited from US chip limitations. September saw the release of the Mate 60 smartphone, which has a 7-nanometer chip made by Semiconductor Manufacturing International Corporation, China's most advanced chipmaker. Given the relative sophistication of the 7-nanometer production process, it is possible that SMIC has outpaced expectations in terms of technological advancement or has managed to evade export regulations.The US government is working to strengthen ties with China, so the stricter limitations coincide with a delicate diplomatic moment. In recent months, members of the Biden administration have visited Beijing for meetings with Chinese authorities.Surging Global Demand for AI Capabilities became Overwhelming for HuaweiHowever, a worldwide competition for artificial intelligence capabilities amidst a Sino-US technical impasse has seen Huawei slide to the second position for its devices, even as the company leads China's smartphone sales for the first time in over three years.Huawei's Focus Shifted to Ascend SeriesChina's standing when it comes to computing capacity has improved thanks to a government initiative. This has increased demand from the public and business sectors for Huawei's Ascend series in particular and prompted local authorities to declare plans for data centers.Ascend Series Considered Equal Opponent to NvidiaIn China, the Ascend 910B is regarded by many as the most competitive AI chip, giving tough competition to Nvidia. Mate 60 smartphone manufacturing has slowed down as a result of the company giving Ascend chip production priority over Kirin chip production in response to increased demand. In the hopes that this manufacturing shift will only last temporarily, Huawei is trying to increase the yield rate.Huawei's Silent Progress in Chip Making Screamed Loud When Launching Mate 60 SeriesHuawei has been very quiet about its ambitions and capabilities for chip manufacturing, and the public knows not much about the company's development or how it has produced cutting-edge processors.The Processor is Capable of Supporting 5G The phones have a Chinese-made processor that could support fifth-generation (5G) telecommunication speeds, according to online teardowns. Experts speculated that Huawei may have accomplished this by modifying deep ultraviolet lithography equipment with assistance from SMIC, the biggest contract chipmaker in China.Analysts noted that this procedure is more time-consuming, costly, and probably less effective than employing the more sophisticated extreme UV devices that the US has banned other nations from supplying to China.With Ascend Series, Huawei Could be China's Top Smartphone SellerMate 60 smartphones have been systematically out of stock, and prospective customers have been complaining online about months-long wait times for their pre-orders to be filled.Nevertheless, according to data source Counterpoint, the series had a major role in Huawei becoming the country's top smartphone seller in the first two weeks of 2024--a position it had held since the end of 2020. ITS INNOVATIONS WERE MADE CLEAR WHEN, IN AUGUST, DURING US COMMERCE SECRETARY GINA RAIMONDO'S VISIT TO CHINA, IT SHOCKED MARKET OBSERVERS BY LAUNCHING THE MATE 60 SERIES WITHOUT A FLAG
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