The U.S. is concerned that China could use advanced semiconductors for military purposes. Huawei’s Xu said these developments could boost, rather than hamper China’s domestic semiconductor industry. “I believe China’s semiconductor industry will get reborn under such sanctions and realize a very strong and self-reliant industry,” Xu said. Last week, Huawei claimed to have completed work on electronic design automation tools for laying out and making chips down to 14nm process nodes.
“But Huawei ideally needs chips of a much smaller nanometer size for more advanced applications, which they are currently finding it difficult to obtain,” adds Reuters. “The company is still reeling from the effects of U.S. sanctions — on Friday, it said net profit dropped 69% year-on-year in 2022, marking the biggest decline on record.”
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