Huawei's Latest Laptop Debunks Chinese Chip Advancement Claims

Taiwan Semiconductor Manufacturing Co (NYSE: TSM) produced the chip in Huawei Technologies Co's latest laptop, the Qingyun L540, debunking rumors of a significant Chinese technological leap. TechInsights' teardown for Bloomberg News revealed a 5-nanometer chip made by TSMC in 2020, which contradicts speculations about Huawei's Chinese partner, Semiconductor Manufacturing International Corp (SMIC), achieving an advanced fabrication technique.

According to Bloomberg, in August, Huawei released a smartphone with a 7nm processor made by SMIC, which was only slightly behind the current technology despite U.S. trade sanctions. 

This development was initially perceived as a significant achievement for Chinese technology, sparking debates about the effectiveness of the sanctions, Bloomberg reports.

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TechInsights found that the L540's Kirin 9006C processor was fabricated using TSMC's 5nm method and assembled around the third quarter of 2020. 

Industry experts had previously thought SMIC developed this capability, which would have been a considerable advancement for the Chinese chipmaker. 

Previous reports indicated Chinese chip designers, including Tencent Holdings Ltd (OTC: TCEHY), promoting their AI chips as options to Nvidia Corp's (NASDAQ: NVDA) products as the U.S. sanctions on China intensified. Nvidia dominates up to 90% of China's $7 billion AI chip market. 

Huawei's recent technological advancements, such as the Mate 60 smartphone, have strengthened its position as a leader in China's efforts to develop domestic technology, challenging Western dependence. Huawei's success with the Mate 60 helped it reach the $100 billion revenue mark, competing with Apple Inc's (NASDAQ: AAPL) iPhone.

Huawei's procurement of a three-year-old TSMC processor indicates its efforts to stockpile vital semiconductors amid U.S. restrictions. 

Since being added to Washington's Entity List in 2019, Huawei has invested heavily in chip research and built a domestic supply chain, sometimes with government support.

Huawei's L540 laptop is part of its effort to enter the mobile and computing device market, aligning with Beijing's push to replace foreign technology in sensitive areas. 

The laptop is marketed for its security features, catering to China's stringent data security requirements in government sectors.

Price Action: TSM shares traded lower by 0.31% at $98.82 premarket on the last check Friday.

Also Read: Huawei's 5G Kirin 9000s Processor Challenges Nvidia's Tech Supremacy

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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