Huawei touts chip breakthrough to shorten gap with TSMC

Huawei Technologies Co. has unveiled a new technological pathway aimed at reducing the gap with its competitor, Taiwan Semiconductor Manufacturing Co. (TSMC), potentially marking a significant milestone in the production of advanced semiconductors without relying on state-of-the-art equipment.

Currently, there exists an approximate five-year discrepancy between TSMC’s production capabilities and those of Huawei, which, in collaboration with its manufacturing ally, Semiconductor Manufacturing International Corp (SMIC), is working to produce 1.4-nanometer chips by 2031 utilizing its proprietary "LogicFolding" technology. This information was revealed by Huawei's semiconductor chief, He Tingbo, during a rare public appearance at a chip conference on Monday, while TSMC has indicated plans to commence mass production of similar chips by 2028.

He declared that their team has discovered a method for "sustainable evolution." Following her address, she informed reporters that Huawei can considerably enhance its chipmaking capabilities without the assistance of Dutch supplier ASML Holding NV’s extreme ultraviolet (EUV) lithography machines, which are widely regarded as vital for the production of cutting-edge semiconductors—equipment to which China does not currently have access.

Additionally, He noted that the Kirin mobile chips set to be released this fall will be the inaugural products to utilize the LogicFolding architecture, a structure designed to enhance chip performance by increasing the transistor count while optimizing data transmission speeds.

"This year, we have prepared a surprise for the entire industry. This is not just saturation or continuation, but a significant leap forward," she stated.

In the aftermath of He’s announcement on Monday, the Star 50 Index in Shanghai, which encompasses several leading Chinese chip firms, surged to a record high. Shares of SMIC experienced an increase of over 18%, while foundry partner Hua Hong Semiconductor Ltd. reached the daily limit of a 20% rise.

Should Huawei successfully produce 1.4nm semiconductors at scale, it would challenge the prevailing industry view that ASML’s EUV lithography machines are essential for mass-producing chips at 5nm or above. These advanced semiconductors are critical in powering the most sophisticated artificial intelligence (AI) technologies.

The nanometer metric indicates the size of transistors on a chip; a smaller transistor size allows for a higher density of transistors on a chip, thereby enhancing its power. ASML’s EUV machines are considered indispensable for decreasing transistor size and are extensively employed by leading global chip manufacturers, including TSMC, Samsung Electronics Co., and Intel Corp., for mass manufacturing.

He elaborated that the LogicFolding architecture is grounded in Huawei's own Tau Scaling Law—a principle the company is adopting to compete with Moore's Law, which has served as the benchmark for the global semiconductor industry for decades. Moore's Law, named after Intel co-founder Gordon Moore, posits that the number of transistors on a chip will approximately double every two years, although many industry insiders, including He, have observed a deceleration in this trend in recent years.

According to He, Huawei's scaling efforts aligned with Moore's Law plateaued six years ago due to U.S. export controls. In response, her team proposed a novel "time scaling" method as an alternative to the industry’s traditional benchmark. Huawei's new principle appears centered on enhancing data transmission speeds by transistors, compensating for the absence of cutting-edge equipment required to significantly miniaturize these components further.

"We have found that time scaling can provide substantial benefits across devices, circuits, chips, and systems," He stated, adding that Huawei has designed and produced 381 chips over the past six years following the Tau Scaling Law. In a separate announcement, Huawei indicated that it is naming its new principle "Her's Law," a nod to its chip chief.

The Tau Scaling Law encapsulates various current trends within the semiconductor industry and is viewed as a pioneering attempt by a company to consolidate these concepts into a coherent theory, as noted by Kitty Fok, managing director of research firm IDC China.

"It may also serve as a new reference point for China's semiconductor industry to navigate process-node constraints," Fok commented.

Previously, Huawei has sought patents that demonstrate its attempts at implementing self-aligned quadruple patterning (SAQP), a technique potentially allowing it to manufacture advanced chips without relying on ASML’s EUV machines. Quadruple patterning is a method of etching multiple lines on silicon wafers to elevate transistor density—and subsequently, performance.

Though Huawei has made continual advancements in its technologies over the recent years, it remains uncertain whether the company can reach the forefront of chipmaking through its exploration of a non-mainstream approach.

Huawei has positioned itself at the forefront of Beijing's drive for semiconductor self-sufficiency, responding to a prolonged, U.S.-led international initiative to tighten the export of advanced chips and equipment, which has somewhat hindered China's progress in AI development.

In September, Huawei revealed a three-year plan to introduce a series of AI chips aimed at addressing the void left by Nvidia Corp., whose most cutting-edge semiconductors are prohibited for entry into China.