Huawei chips are one generation behind U.S. but firm finding workarounds, CEO says
Huawei Technologies' chips are one generation behind those of U.S. peers but the firm is finding ways to improve performance through methods such as cluster computing, Chinese state media quoted CEO Ren Zhengfei as saying on Tuesday.
The chipmaker invests 180 billion yuan ($25.07 billion) in research annually and sees promise in compound chips — chips made from multiple elements — Ren said in an interview with the People's Daily newspaper of the governing Communist Party.
There is "no need to worry about the chip problem", Ren said, addressing concerns stemming from U.S. export controls.
The article, published on the front page of the newspaper, comes as top U.S. and Chinese officials are set to resume trade talks for a second day in London, where topics such as U.S. tech restrictions on China are expected to be discussed.
Since 2019, a slew of U.S. export curbs, aimed at curbing China's technological and military advancements, have restricted Huawei and other Chinese firms from accessing high-end chips and the equipment needed to produce them from abroad.
Ren's comments are the first ever from him or Huawei about the company's advanced chipmaking efforts, which have become a flashpoint in U.S.-China tensions.
Huawei is just one of many Chinese chipmakers, Ren said in the interview, adding: "The United States has exaggerated Huawei's achievements. Huawei is not that great. We have to work hard to reach their evaluation."
"Our single chip is still behind the U.S. by a generation. We use mathematics to supplement physics, non-Moore's law to supplement Moore's law and cluster computing to supplement single chips and the results can also achieve practical conditions. Software is not a bottleneck for us," he said.
Cluster computing is when multiple computers work together. Moore's law refers to the speed of chip advancement.
Huawei's Ascend series of AI chips competes in China with offerings from Nvidia, the global leader in AI chips.
The U.S. Commerce Department last month said the use of Ascend chips would be a violation of export controls.
Nvidia's AI chips are more powerful than Huawei's, but the company has been barred by Washington from selling its most sophisticated chips to China, causing it to lose significant market share to Huawei.
In April, Huawei launched "AI CloudMatrix 384", a system that links 384 Ascend 910C chips in a cluster that companies can use to train AI models, which has been described by analysts as able to outperform Nvidia's GB200 NVL72 system on some metrics.
Dylan Patel, founder of semiconductor research group SemiAnalysis, said in an article that month that it meant that Huawei and China now had AI system capabilities that could beat Nvidia.
Nvidia and the U.S. Commerce Department did not immediately respond to a request for comment on Ren's remarks.
Ren also said about a third of Huawei's annual research spending went to theoretical research, while the rest was spent on product research and development.
"Without theory, there will be no breakthroughs, and we will not catch up with the United States."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
12 minutes ago
- New York Post
China chows on US fast food at London trade talks
China's trade negotiators surrendered at the end of the second day of US trade talks in London — by feasting on American fast food, The Post has learned. The famished Chinese delegation ordered a delivery of McDonald's, Burger King and KFC after the day-long negotiations at just after 7:30 p.m. local time, sources said. Team Trump — featuring Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer — also turned to a fast-food option. However, they dined on takeout from Pizza Express, a British chain specializing in handmade pizzas, the sources told The Post. 4 Chinese officials were left humiliated at the end of trade talks against Trump's team by ordering takeout made up entirely of US fast food. The president, seen above during the campaign last year, is a known aficionado of McDonald's meals. Getty Images One insider branded Beijing's gastronomic choices as 'a total cultural victory' for the United States, even though there was no deal announced on ending the tariff trade spat in sight. 4 The Trump administration team dined out on handmade pizzas from the British restaurant chain Pizza Express, sources said. SOPA Images/LightRocket via Getty Images A spokesman for China's embassy to the UK did not respond to The Post's request for comment. The US and China meting at Lancaster House to try and build on negotiations in Geneva last month that agreed to a 90-day suspension of most of the 100%-plus tariffs they had imposed on each other in an escalating global trade war. Lancaster House, an 18th-century mansion a stone's throw from Buckingham Palace, is close to the upmarket neighborhood of Mayfair that is home to some of the British capital's best restaurants. The move by Chinese officials, led by Vice Premier He Lifeng, may be seen as a blow to the host country, which has repeatedly seen its culinary capabilities derided by snooty foreigners throughout history. Insiders refused to be drawn in on whether the meals of choice for Beijing's top brass could raise the chances of success for a possible agreement with Washington. 4 Treasury Secretary Scott Bessent, who called the talks 'productive', has left London to appear in Congress on Wednesday. REUTERS Treasury Secretary Scott Bessent, who is on the way back to DC and will debrief Congress on Wednesday, called the meeting 'productive.' On Monday, President Trump told reporters: 'We are doing well with China. China's not easy.' The commander-in-chief is known to be a fast food aficionado and even served diners at a McDonald's drive-thru during a campaign stop in the swing state of Pennsylvania in October. 4 Chinese Vice Premier He Lifeng and his team snubbed some of London's finest restaurants on Tuesday. REUTERS His preferred order at the Chicago-based fast food chain is two Big Macs, two Filet-o-Fish sandwiches, and a chocolate milkshake, according to a 2017 book written by two former campaign staffers. The 'Let Trump Be Trump: The Inside Story of His Rise to the Presidency' tome was penned by Corey Lewandowski and David Bossi. On the table for trade talks, aside from the fast food, are the levies slapped on semiconductors that power artificial intelligence, visas for Chinese students at American universities, and rare earth minerals that are vital to carmakers and other industries. The negotiations were sparked by the threat of Trump's so-called Liberation Day reciprocal tariffs, which he threatened to slap on countries that he believed had been treating the US unfairly.
Hamilton Spectator
an hour ago
- Hamilton Spectator
Minister flags concern over BC Ferries' construction deal with Chinese shipyard
British Columbia's transport minister says he has raised concerns with BC Ferries about its decision to have a Chinese shipyard build four new ferries for its passenger fleet, amid an ongoing trade conflict between Canada and China. Mike Farnworth says he's worried about procuring services from 'any country that is actively harming Canada's economy' with tariffs and protectionism. Farnworth's remarks come hours after the announcement by BC Ferries CEO Nicolas Jimenez that China Merchants Industry Weihai Shipyards had won the contract. Jimenez said he wasn't worried about geopolitical tensions between Canada and China, adding his primary focus was getting the province a good deal. Farnworth says in a statement that BC Ferries is an independent company, but he's disappointed 'more involvement from Canadian shipyards' wasn't part of the contract. The first vessel is expected to come into service in 2029 with the others following in six-month intervals. This report by The Canadian Press was first published June 10, 2025.
Los Angeles Times
an hour ago
- Los Angeles Times
US stocks drift closer to their record as Wall Street waits to see what US-China talks will bear
NEW YORK — U.S. stocks drifted closer to their all-time high on Tuesday as the wait continued to hear what will come of trade talks between the United States and China. The S&P 500 rose 0.5% as talks between the world's two largest economies carried into a second day. The Dow Jones Industrial Average added 105 points, or 0.2%, and the Nasdaq composite gained 0.6%. Stocks have roared higher since dropping roughly 20% below their record two months ago, when President Donald Trump shocked financial markets with his announcement of tariffs that were so stiff that they raised worries about a possible recession. Much of the rally has been due to hopes that Trump would lower his tariffs after reaching trade deals with countries around the world, and the S&P 500 is back within 1.7% of its record set in February. It's getting to be time to see whether such hopes were warranted. The talks with China were going 'really, really well,' U.S. Secretary of Commerce Howard Lutnick said Tuesday evening in London, where the talks were being held. The two sides worked on 'all sorts of trade issues,' he said, according to a video clip posted by the Chinese state broadcaster CGTN. Both the United States and China have put many of their tariffs announced against each other on pause as talks continue. Even though many tariffs are on hold for the moment, they're still affecting companies and their ability to make profits because of all the uncertainty they've created. Designer Brands, the company behind the DSW shoe store chain, became the latest U.S. company to yank its financial forecasts for 2025 because of 'uncertainty stemming primarily from global trade policies.' The company, which also owns the Keds, Jessica Simpson and other shoe brands, reported a larger loss for the start of the year than analysts were expecting, and its revenue also fell short of forecasts. CEO Doug Howe pointed to 'persistent instability and pressure on consumer discretionary' spending, and the company's stock tumbled 18.2%. The uncertainty is moving in both directions, to be sure. A survey released Tuesday of optimism among small U.S. businesses improved a bit in May. 'While the economy will continue to stumble along until the major sources of uncertainty are resolved, owners reported more positive expectations on business conditions and sales growth,' according to Bill Dunkelberg, chief economist at the National Federation of Independent Business. On Wall Street, J.M. Smucker fell 15.6% even though its results for the latest quarter topped analysts' expectations. Its revenue fell short of expectations, as did its forecast for profit in the upcoming year. Tesla helped to make up for such losses after rising 5.7%. The electric vehicle company has been recovering since tumbling last week as Elon Musk's relationship with Trump imploded. That raised fear about possible retaliation by the U.S. government against Tesla. Shares that trade in the United States of chipmaking giant Taiwan Semiconductor Manufacturing Co. rose 2.6% after the company known as TSMC said its revenue in May jumped nearly 40% from the year earlier. Casey's General Stores leaped 11.6% after the chain of convenience stores based in Ankeny, Iowa, reported a stronger profit for the latest quarter than analysts expected. It credited strength in sales of hot sandwiches and other items. All told, the S&P 500 rose 32.93 points to 6,038.81. The Dow Jones Industrial Average added 105.11 to 42,866.87, and the Nasdaq composite climbed 123.75 to 19,714.99. In stock markets abroad, indexes were mixed amid mostly modest movements across Europe and Asia. A 0.8% drop for Germany's DAX and a 0.6% gain for South Korea's Kospi were two of the bigger moves. In the bond market, the yield on the 10-year Treasury eased to 4.47% from 4.49% late Monday. Choe writes for the Associated Press.
