TSMC, the world’s leading chipmaker, downplayed the threat posed by Huawei’s recent advances in chip development during its shareholder meeting. Citing a technological gap and US export restrictions, TSMC executives expressed confidence in maintaining their market dominance.
Chairman Mark Liu addressed a shareholder’s query about Huawei and other competitors, stating, “TSMC considers every competitor very carefully. We will always have competitors. But it has nothing to do with Huawei or not.” He downplayed Huawei’s threat, suggesting it, and China by extension, are far behind.
TSMC President Wei Zhejia also claimed that “it’s impossible” for Huawei to catch up to their chip fabrication technology. The confidence is likely due to TSMC’s established position at the forefront of the semiconductor industry.
Huawei is particularly affected by US government restrictions that limit its access to advanced chipmaking equipment, hindering its ability to compete at the highest level. As a result, while TSMC is planning to start 2nm chip production by next year, Huawei is still working with 7nm processors, with rumors suggesting that their 5nm SoC may debut soon.
Huawei which was blacklisted by the US in 2019 has attempted a comeback with the Mate 60 Pro and its new Kirin 5G processors. However, their 7nm technology puts them at a disadvantage in terms of performance and efficiency compared to the latest offerings from other chipmakers.
While Huawei’s efforts towards self-sufficiency are noteworthy, the gap in technology and the limitations imposed by US restrictions is a significant challenge. The question remains: can any competitor, including Huawei, overcome TSMC’s established lead and strict export controls? Only time will tell if a challenger emerges to dethrone the current leader in the chipmaking race.
(Via)
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