Huawei Faces Chip Manufacturing Challenges Due to US Sanctions

Amid escalating tech competition, the United States has gained a significant advantage in semiconductor technology, particularly through a partnership between ASML and Intel, which has introduced the Twinscan EXE:5000 machine capable of producing 2 nm chips by 2025. This advancement positions the US to lead the chip market, complicating China's ambitions in this sector. In contrast, Huawei is struggling to develop advanced chips due to US sanctions that restrict access to critical manufacturing equipment, leaving them reliant on older 7-nanometer technology. As a result, Huawei's efforts to compete with Nvidia's AI processors are hampered, potentially delaying their product availability until 2026. The sanctions have also affected Huawei's production capabilities, as their primary manufacturing partner, SMIC, faces challenges with chip yields. This technological divide highlights the widening gap between US and Chinese semiconductor capabilities.