Huawei's new laptop uses older China-made chip, US curbs stall SMIC, report shows
BEIJING, June 23 (Reuters) - Huawei Technologies' new MateBook Fold laptop is powered by an older-generation chip made by SMIC (0981.HK), opens new tab, highlighting how U.S. export curbs are hindering China's top foundry from advancing to next-generation semiconductor manufacturing, Canadian research firm TechInsights said on Monday.
There was widespread speculation in the industry that Huawei (HWT.UL) would use SMIC's newer 5nm-equivalent N+3 process node chip in the MateBook Fold that, according to TechInsights, marks Huawei's "most aggressive entrance into full-stack computing; chip design, OS development, and hardware integration".
However, the laptop instead features the Kirin X90 chip, built on the same 7nm N+2 process node that was first introduced in August 2023, TechInsights said in a report.
"This likely means that SMIC has not yet achieved a 5nm equivalent node that can be produced at scale," it said.
"U.S.-imposed technology controls are likely continuing to impact SMIC's ability to catch-up to current foundry leaders in more advanced nodes across chips for mobile, PCs, and cloud/AI applications," TechInsights added.
The MateBook Fold, which does not have a physical keyboard and features an 18-inch OLED double screen, was one of two new laptops Huawei launched last month. The devices are part of Huawei's broader push to build a self-reliant ecosystem amid U.S. efforts to limit its access to advanced chips.
The laptops are the first to be sold with Huawei's Harmony operating system. It has not officially disclosed the processor used, though past models have used Intel (INTC.O), opens new tab chips.
Huawei did not immediately respond to a request for comment.
Reuters reported last year that the U.S. revoked licences that had allowed companies including Intel and Qualcomm (QCOM.O), opens new tab to ship chips used for laptops and handsets to Huawei.
The U.S. curbs limited SMIC's access to advanced chipmaking tools, including extreme ultraviolet lithography. China-based foundries have to now rely on less efficient multi-patterning techniques that reduce yield, the report said.
The report noted that Huawei's 7nm chip is several generations behind those used by Apple (AAPL.O), opens new tab, Qualcomm, and AMD (AMD.O), opens new tab. It added that China remains at least three generations behind the global semiconductor frontier, as foundries like TSMC and Intel prepare to roll out 2nm process technology within the next 12 to 24 months.
Earlier this month, Huawei CEO Ren Zhengfei told Chinese state media that Huawei's chips were just one generation behind that of U.S. peers but the firm was finding ways to improve performance through methods such as cluster computing.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
3 hours ago
- Reuters
ERG plans to produce critical mineral gallium in Kazakhstan next year
LONDON, June 23 (Reuters) - Eurasian Resources Group plans to invest $20 million in facilities to produce critical mineral gallium in Kazakhstan from next year, from the bauxite ore it processes to produce alumina, the company said in a release on Monday. Gallium is on the U.S. and European Union's lists of critical minerals. It is needed for the manufacture of semiconductors for electronics and radar systems and missile guidance electronics in aerospace and defence. ERG's plans would make Kazakhstan, which until now has produced no gallium, the world's second largest producer after China. "ERG plans to become a significant player in the global market for gallium, starting production in 2026 to supply OECD countries, with a view to expanding annual volumes up to 15 metric tons per annum," ERG CEO Shukhrat Ibragimov said. Global gallium production totalled 760 tons last year according the U.S. Geological Survey. Most was from China and very small amounts from Japan, Korea and Russia. China banned the export of gallium, germanium and antimony to the United States last December in response to a crackdown on China's chip sector by Washington. Although the outright ban only applies to the United States, in the 18-months prior to the suspension, China had steadily introduced export licensing regimes for the three metals. Alumina is used to smelt aluminium.
Telegraph
3 hours ago
- Telegraph
Iran risks enraging China by closing Strait of Hormuz
Closing the narrow Strait of Hormuz is a tempting option as Iran considers how to respond to the US attack on its nuclear facilities. However, shutting the channel to maritime traffic would be a monumental undertaking – one quite possibly beyond Iran's military capabilities. It would also be a mission fraught with hazards, risking enormous damage to Iran's tottering economy, potentially enraging its backer China – nearly half of whose total crude oil imports pass through the strait – and almost certainly inviting further, more extensive US military retaliation. The Strait of Hormuz is among the world's most vital maritime choke points. Located between Iran and Oman, it connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. While Iran could launch some of its dwindling stockpile of ballistic missiles at energy infrastructure in the Gulf, such direct action carries substantial risks of retaliation. Iran could instead rely on proxy groups to attempt limited disruption of shipping in the Persian Gulf — a 'plausible deniability' approach that could roil global energy markets without necessarily provoking an immediate US military response. It could mine the strait or attach limpets to the hulls of tankers — a middling course of action it might calculate would deter escalation. Iran chose this option during the tanker war and was accused of doing so to six commercial ships in 2019. Or, in desperation, it could wage a full-frontal, multi-pronged operation if it decides to draw the US into a large-scale war — an option that would entangle Donald Trump in the kind of 'forever conflict' he has long sought to avoid, but which would also imperil the survival of the Islamic regime. A fifth of global oil production — around 20 million barrels per day — passes through the strait. Blocking the narrow channel could gum up energy supply lines and send oil prices soaring — potentially doubling to $150 a barrel, according to some analysts, bringing misery to motorists across the world. China, heavily dependent on oil shipments through the strait, would probably feel the impact most acutely as pressure mounts on its strategic petroleum reserves. Beijing — despite its anti-US rhetoric and strong political and trade ties with Iran — is presumably using its leverage on Tehran not to take such a drastic step. China buys some 90 per cent of all Iranian crude oil. It is by far the largest destination for oil coming through the Strait of Hormuz with an estimation of 5.4 million barrels per day. Iranian oil accounts for as much as 15 per cent of the crude shipped to China. Closing the strait would also jeopardise Iran's own oil-dependent economy. Even under heavy sanctions, it still exports roughly 1.5 million barrels of crude a day. Iran exported $67 billion of oil in the year to March, bringing in its highest level of oil revenue in the past decade, according to estimates by the Central Bank of Iran. Some 20 million barrels of oil go through the Strait per day. A small amount of that goes to the US, accounting for about 7 per cent of total US crude oil. Iran also shares the largest natural gas field in the world, the South Pars field, with Qatar. Europe's imports from Qatar are providing nearly 10 per cent of its LNG needs. History suggests that when Iran believes the military imperative outweighs all other considerations, it is willing to gamble. During its eight-year war with Iraq in the 1980s, Iran attempted to seal the strait in retaliation to enemy attacks on its shipping. In a preview of the kind of action it may now be considering, Iran sought to close the strait by firing anti-ship cruise missiles at commercial vessels belonging to Iraq's trading partners. It also laid mines across the waterway. During the so-called tanker war, Iran launched attacks on 168 merchant vessels, while Iraq — better armed thanks to weapons supplied by the US and France — struck 238 ships. As security in the Gulf deteriorated in the 1980s, the Royal Navy dispatched the so-called Armilla Patrol to the region, despite having withdrawn its forces 'East of Suez' nine years earlier. With British commercial interests under threat, and following a plea from Washington, Margaret Thatcher deployed the Navy to protect merchant ships sailing under the Red Ensign and reassure friendly Gulf states. The Royal Navy is smaller today than it was then —it operates 14 destroyers and frigates now, compared with 64 in 1980. But it maintains a maritime presence in the Gulf under Operation Kipion, the successor to the Armilla Patrol, and has a naval support facility in Bahrain. Britain could therefore be called upon to support a US-led mission to keep the Strait of Hormuz open. Lessons from history There are grim lessons to be learnt from the past, as well. As the tanker war escalated, the US launched Operation Earnest Will in 1987 to protect Kuwaiti tankers from Iranian attack. Although the mission ensured that 98 percent of commercial vessels passed through the Gulf safely, it was nonetheless fraught with mishap. Even before the operation formally began, an Iraq air force jet mistakenly fired two Exocet missiles at the USS Stark, killing 37 American sailors. Three other US warships later struck Iranian mines. In the most infamous incident of the operation, the USS Vincennes mistakenly shot down a Iranian passenger airliner, killing all 290 people on board, shortly after a battle with Iranian naval forces. Whether or not Iran and the West are now doomed to repeat the tanker war remains to be seen — but history suggests such confrontations offer few rewards to either side.
Reuters
3 hours ago
- Reuters
India prioritises national interest in US trade talks, trade ministry source says
NEW DELHI, June 23 (Reuters) - Protecting India's interest remains "supreme" in bilateral trade talks with the United States, a senior Indian trade ministry source said on Monday, as New Delhi pushes to finalise a deal before the expiry of the pause on steep reciprocal tariffs imposed by U.S. President Donald Trump. India is resisting U.S. demands to open its markets for wheat, dairy and corn imports, while offering lower tariffs on high-value U.S. products such as almonds, pistachios and walnuts. An Indian delegation will travel to Washington soon for further negotiations, with the aim of signing an interim trade agreement that could include tariff cuts and enhanced market access for key products from both sides, another trade ministry official told reporters. "The dates for the visit are being finalised," the official said, adding India is keen to conclude a limited deal ahead of the July 9 deadline. However, the official also cautioned that progress hinges on the offers made by both sides. 'For us, in every trade negotiation including with the U.S., national interest is supreme,' the trade ministry source said. India has asked the U.S. to revoke its 10% base tariff and consider steel tariff cuts as part of an interim deal, while offering to address non-tariff barriers and customs rules in the first phase of a broader trade pact likely by autumn of 2025, sources said. Trump and Indian Prime Minister Narendra Modi had agreed in February to conclude a bilateral trade agreement by autumn 2025 and to more than double bilateral trade to $500 billion by 2030. "The outcome of talks depends on what is offered by both sides," the Indian official said, when asked about the possibility of the deal not materialising by Trump's July 9 deadline.
