In the context of the continuous escalation of the Sino-US trade war, China's local semiconductor companies have been continuously suppressed and sanctioned by the United States, and have fallen into an unprecedented predicament. Among them, the two major companies represented by Huawei and SMIC have undoubtedly become key players in this technological wrestling.
On the one hand, Huawei, as China's leading communications equipment manufacturer, has always been regarded as a "security risk" by the United States, and has suffered from various targeted technology blockades and trade restrictions. As Huawei's main chip foundry, SMIC was inevitably involved in this turmoil, and was even directly accused by the United States of "taking the blame for Huawei".
On the other hand, under the pressure of these external pressures, Huawei and SMIC are exploring a new path of independent innovation. They are trying to break free from the shackles of the U.S. technology blockade and reshape their position in the global semiconductor industry through independent research and development, domestic substitution and other measures.
This fierce game of science and technology wrestling between China and the United States is not only related to the development prospects of the two companies themselves, but also reflects the difficult road of transformation and upgrading of China's semiconductor industry. Only in this turbulent situation can Chinese enterprises adhere to independent innovation and finally occupy a favorable position in the global technology competition.
1. The mystery of Huawei's 7nm chip: the US side will continue to investigate
As one of China's most prominent technology companies, Huawei has always held a leading position in the field of communication equipment. But it is precisely this advantage that makes it inevitably the target of US government suppression.
The United States is confused about the movement of Huawei's chip supply chain
In the process of Huawei encountering US sanctions, the most striking thing is undoubtedly the problem of its self-developed 7nm chip.
As we all know, due to the "Entity List" restrictions of the US Department of Commerce, Huawei has been cut off from supply chain links with advanced international manufacturers such as TSMC. In this case, how Huawei successfully released the flagship mobile phone Mate 30 Pro with a 7nm chip in 2019 has been the focus of attention of the US government.
How did Huawei obtain chips with such advanced manufacturing processes, or did they independently develop breakthrough technology? In this regard, the United States has been conducting a secret investigation in the hope of uncovering this "heavenly opportunity."
If Huawei really masters the 7nm chip manufacturing technology, it undoubtedly means that it has made a major breakthrough in the field of semiconductors, which will seriously impact the dominance of the United States in this field. Therefore, the United States is anxious to figure out the truth behind it.
SMIC is accused of "taking the blame for Huawei"
In the process of exploring the supply channel of Huawei's 7nm chips, the US government pointed the finger at SMIC, a leading local semiconductor company in China.
The U.S. side believes that SMIC is very likely to provide Huawei with 7nm chip foundry services, so it is also included in the target of suppression. They said that SMIC, as Huawei's main chip supplier, should be responsible for Huawei's technological breakthroughs.
But the truth doesn't seem so simple. According to SMIC's own financial report data, they have not received large-scale orders for 7nm chips from Huawei. This also means that the US "detain" SMIC to Huawei may be just an excuse.
The reason for this may be that the U.S. government has long planned to suppress SMIC, but is just looking for a suitable entry point. After all, SMIC, as China's largest semiconductor manufacturer, has always been a key target of the United States to suppress China's technological strength.
The common dilemma of Huawei and SMIC
In any case, both companies face serious challenges in this crackdown on Huawei and SMIC.
On the one hand, Huawei's 7nm chip supply problem has always been an unsolved mystery, and it is likely to become a "handle" for the US government to continue to target it. Although SMIC argues that it does not provide foundry services for Huawei, it still has not been able to completely escape the fate of being involved in the United States.
On the other hand, this continuous pressure on the two companies has undoubtedly exacerbated their difficulties in technology and industrial chain. Under the continuous blockade and sanctions of the United States, Huawei and SMIC have to deal with various external pressures and devote limited resources to self-defense, which undoubtedly hinders their development of more innovation.
It can be said that in this contest of Sino-US technology competition, Huawei and SMIC have become the most direct victims. They are not only facing pressure from the United States, but also forced to fall into the dilemma of technology and industrial chain, and the future is full of uncertainty.
2. SMIC's sanctions dilemma: the road to independent innovation has a long way to go
As a leader in China's semiconductor manufacturing industry, SMIC has been a key target of the United States to suppress China's technological strength. Against the backdrop of intensifying technology rivalry between China and the United States, SMIC has to face an increasingly severe sanctions crisis.
The United States has stepped up its crackdown on SMIC
In recent years, with the escalation of the trade war between China and the United States, SMIC has gradually become the focus of US sanctions.
On the one hand, the U.S. government accuses SMIC of providing 7nm chip foundry services to Huawei, and tries to restrict SMIC's business development through sanctions. Although SMIC has denied the accusation, it has not been able to fully escape the fate of being implicated.
On the other hand, the United States has also questioned SMIC's technical level and product quality. They claim that SMIC's manufacturing process and product performance lag far behind that of advanced international companies such as TSMC, so it should not be regarded as a safe and trustworthy supplier.
It can be said that this move by the United States is undoubtedly an attempt to hit SMIC's position in the global semiconductor industry through various means and curb the further improvement of its technological strength. This crackdown on SMIC has also become another focus in the Sino-US technology competition.
SMIC's road to independent innovation is arduous
In the face of continuous pressure from the United States, SMIC had to plan ahead and strive to accelerate the pace of independent innovation.
On the one hand, SMIC is increasing its R&D investment in advanced manufacturing processes, independently developing high-end lithography machines and other key equipment, and striving to achieve breakthroughs in 7nm and below processes. According to the news, SMIC is currently secretly developing a lithography machine with independent intellectual property rights, which is undoubtedly an important attempt to break free from the US technology blockade.
On the other hand, SMIC is also actively seeking in-depth cooperation with other domestic semiconductor companies, hoping to make up for its own shortcomings in some fields through the integration and optimization of the industrial chain. For example, it has established joint ventures with Tsinghua Unigroup and other enterprises to devote itself to the localized production of DRAM and other memory chips.
However, it can be seen that SMIC's desire to completely get rid of the shackles of US sanctions through independent innovation is not achieved overnight. This requires enterprises to continue to invest a lot of money and manpower, and at the same time, they must overcome many challenges such as insufficient technology accumulation and lack of industrial chain coordination.
It can be said that in the fierce scientific and technological struggle between China and the United States, SMIC is struggling to explore an independent development path of "independent innovation". Only by unremittingly promoting technological innovation and constantly improving the industrial layout can they finally occupy a favorable position in this competition.
Domestic substitution: SMIC's "last ditch"
In addition to independent innovation, SMIC is also actively promoting the domestic substitution strategy in order to challenge the US sanctions pressure on it.
Specifically, SMIC is focusing on expanding the application scope of its chip products in the domestic market, especially seeking more opportunities in the fields of automotive electronics and the Internet of Things. At the same time, they have also accelerated the integration of resources for domestic customers and actively assisted local enterprises to reduce their dependence on foreign chips.
This strategy of "domestic substitution" is undoubtedly a "last resort" for SMIC to deal with the current predicament. On the one hand, it can help SMIC find new markets and growth points in the face of the US blockade. On the other hand, it will also help promote the autonomy process of the entire Chinese semiconductor industry and enhance its ability to resist the impact of external risks.
Although SMIC still has a long way to go in domestic substitution, as long as it persistently promotes, it is believed that it will eventually be able to disperse the risk of US sanctions to a certain extent and expand its own living space.
It can be said that in this Sino-US technology wrestling, SMIC is striving to find a new way out of the dilemma with independent innovation and domestic substitution as a two-pronged approach. This is not only related to SMIC's own development prospects, but also closely related to the independent future of China's semiconductor industry.
3. Huawei's path to self-help: the only way to do it is to be independent and controllable
As the United States continues to escalate its pressure on Huawei, Huawei, as a Chinese technology giant, has to seek a way to "save itself" in the midst of difficulties.
Huawei's technology strategy is "independent and controllable".
In the face of the U.S. technology blockade, Huawei has clearly put forward an "independent and controllable" technology strategy. This means that it will push the boundaries of independent R&D and technological innovation in an all-round way with a view to achieving breakthroughs in key areas and moving away from dependence on American technology.
Specifically, Huawei is focusing on self-developed chips, operating systems, cloud computing, and other fields. Not only are they striving for breakthroughs in the chip manufacturing process, but they are also investing heavily in operating systems and software platforms.
The core goal of this strategy is to build a "Huawei-centric" technology ecosystem that is fundamentally free from the constraints of American technology. Only by achieving true "autonomy and control" can Huawei better cope with technological suppression from the United States and protect its position in the global technology landscape.
Huawei and SMIC's "Community of Shared Future"
At the same time, Huawei is also actively seeking in-depth cooperation with local semiconductor companies in China, especially with SMIC.
As a major supplier of Huawei's mobile phone chips, SMIC has undoubtedly become the target of US sanctions. However, it is precisely under this common predicament that the two companies began to strengthen technical exchanges and industrial chain cooperation, in order to jointly break through the technological blockade of the United States.
For example, Huawei is exporting advanced manufacturing processes and equipment technologies to SMIC to help SMIC upgrade its processes. SMIC is also providing Huawei with more customized chip solutions to meet its needs in 5G, artificial intelligence and other fields.
It can be said that in the face of strong pressure from the United States, Huawei and SMIC are building a "community of shared future" to help each other and jointly seek a way out of technological independence and control. This will not only help enhance the competitiveness of both parties in the global market, but also inject strong impetus into the independent development of China's semiconductor industry.
Domestic substitution: the key fulcrum of Huawei's "self-help".
In addition to technological independence, Huawei's "domestic substitution" strategy at the product level has also become a key fulcrum on its "self-help" road.
On the one hand, Huawei is accelerating the application of its self-developed operating system "HarmonyOS" on consumer electronic devices such as mobile phones and computers, in order to gradually replace Google's Android system. This will not only help Huawei get rid of its dependence on American technology, but also provide important support for it to build its own ecosystem.
On the other hand, in the field of chips, Huawei has also significantly increased the demand for domestic alternative chips. Shifting from U.S. chip giants such as Qualcomm and Broadcom to domestic suppliers such as HiSilicon and SMIC is undoubtedly a response to Huawei's technological limitations.
It can be said that this product strategy based on "domestic substitution" not only helps Huawei to find a way to survive in the current predicament, but also injects strong impetus into the development of China's semiconductor industry. As long as it persists, it is believed that Huawei will eventually be able to reshape its position in the global technology landscape under the pressure of the United States.
IV. Conclusion
In general, in this fierce game of Sino-US technology wrestling, Huawei and SMIC, the two Chinese technology giants, have undoubtedly become the most direct "victims".
On the one hand, Huawei has suffered unprecedented pressure from the U.S. government, not only has it been cut off from the supply chain with international chip giants such as TSMC, but even its self-developed 7nm chip has always been the focus of attention of the U.S. side. SMIC, as Huawei's main chip supplier, could not escape the fate of being affected and suffered comprehensive sanctions from the United States.
On the other hand, under such external pressure, Huawei and SMIC have to seek a new way out of the predicament through independent innovation and domestic substitution. They are working hard to build a "China Chip" ecosystem that is mutually collaborative and shares a common destiny, and strives to achieve breakthroughs in key areas such as technology and industrial chains, so as to get rid of dependence on the United States.
It can be said that this Sino-US technology wrestling is not only related to the future of Huawei and SMIC, but also reflects the difficult road of transformation and upgrading of China's semiconductor industry. Only in this turbulent and changing situation, can Chinese enterprises adhere to independent innovation, unite and cooperate, and finally occupy a favorable position in the global scientific and technological competition.
In the future, with the continuous enhancement of the strength of China's semiconductor industry, it is believed that Huawei, SMIC and even the entire industry will be able to find their own development path in this Sino-US technology wrestling. As long as it keeps up with the pace of technological innovation and continuously strengthens its independent capabilities, China will eventually play a more important role in the global science and technology map.