Huawei’s endeavor to develop a substitute for extreme ultraviolet lithography (EUV) machines could significantly reshape the dynamics of the smartphone industry. Currently, the advanced chips that power leading devices like the iPhone and Galaxy S series remain elusive for Huawei due to restrictions on EUV machines, crucial for fabricating chips with process nodes smaller than 7nm. This technology, exclusively manufactured by Dutch firm ASML, is blocked from being shipped to China, leaving Huawei at a disadvantage in the competitive market. Chinese foundries, particularly SMIC, can utilize older deep ultraviolet technology to produce 7nm Kirin processors.
However, this still places Huawei several generations behind rivals like Apple and Qualcomm in terms of silicon advancement. Although the recent Mate 60 series equipped with 5G-supporting Kirin chips marked a significant achievement for Huawei amid U.S. sanctions, the potential breakthrough in lithography technology could be transformative. Reports indicate that Huawei is exploring laser-induced discharge plasma (LDP) technology, which may allow it to produce the necessary 13.5nm wavelength for advanced chip production. This innovation could serve as an alternative to EUV lithography machines, granting Huawei greater autonomy in chip manufacturing and reducing U.S. influence over its operations.
If Huawei successfully develops its own EUV-compatible technology, it could re-emerge as a formidable competitor against industry giants like Apple and Samsung. Historically, Huawei was once the second-largest smartphone manufacturer globally before facing sanctions and severe setbacks. The ability to independently produce high-quality chips could pave the way for Huawei to reclaim its position in the smartphone market and reestablish itself as a leader in innovative technology.