Shedding Light on Huawei's Chip Struggles and Countermeasures
Huawei's founder discusses the robustness of in-house semiconductors.
As the trade war between China and the U.S. continues, Huawei founder Ren Zhengfei has acknowledged that Huawei's chip technology lags behind American rivals. However, Ren maintains that China possesses several thriving chip developers, himself included.
Huawei has been a prime target of U.S. sanctions in the past and has since focused on creating self-sustaining chip technology. The latest move by U.S. chipmaker Nvidia suggests that restricted shipments to China have catapulted Huawei into a serious competitor in the market. This is due mainly to the restricted access that Chinese companies have to advanced AI chips from Nvidia, thanks to U.S. regulations.
Bridging the Gap with Bundled Power
During the London trade talks between the U.S. and China, Ren revealed Huawei's approach to bridge the technology gap: a process called "clustering." This method involves connecting multiple chips to pool their computing power, helping to offset the drawbacks of individual chips.
While Ren hasn't defined "clustering" explicitly, it could theoretically encompass three distinct types:
- Resource Clustering: This tactic groups resources such as talent, technology, and infrastructure to speed up innovation and boost efficiency in the development of chips.
- Technological Clustering: Creating clusters of related technologies aids in the creation of more sophisticated and integrated chip solutions, minimizing the requirement for external components.
- Industrial Clustering: Establishing clusters of industries associated with chip manufacturing fosters collaboration and promotes innovation among companies, strengthening local ecosystems and reducing vulnerability to external disruptions.
All in all, Huawei is diligently addressing the technical deficiencies in its chip technology by nurturing indigenous capabilities, diversifying its supply chain, and investing in technological innovation. The "clustering" strategy, albeit not explicitly stated, could potentially be employed to improve resilience and stimulate innovation, ultimately enabling Huawei to compete effectively amidst ongoing trade conflicts.
- Huawei's "clustering" strategy, aimed at bridging the technology gap, includes pooling resources such as talent, technology, and infrastructure in what is known as Resource Clustering.
- In an effort to create more sophisticated and integrated chip solutions, Huawei's "clustering" approach also involves Strategic Technological Clustering, where they group related technologies together to minimize the need for external components.
