Huawei targets 1.4nm chips by 2031 to rival TSMC
What's the story
Huawei Technologies has announced a new strategy to close the gap with Taiwan Semiconductor Manufacturing Company (TSMC), the industry leader in semiconductor production. The company plans to start manufacturing 1.4-nanometer (nm) chips by 2031 using its proprietary "LogicFolding" technology, despite a current five-year gap between what TSMC can do and what Huawei, together with Semiconductor Manufacturing International Corp (SMIC), can produce.
Production plans
Huawei's semiconductor chief reveals plans
Huawei's semiconductor chief, He Tingbo, revealed the company's plan to start making 1.4nm chips. This comes as TSMC has already announced its intention to begin mass production of similar products in 2028. If Huawei succeeds in this endeavor, it would go against the industry consensus that advanced semiconductors (5nm or smaller) can only be produced using state-of-the-art extreme ultraviolet lithography machines from Dutch supplier ASML Holding NV.
Nanometer importance
Nanometer measurement significance and EUV machines' role
The nanometer measurement indicates the size of transistors on a chip, with smaller transistors allowing more to be fitted on a single chip. This results in increased power. ASML's EUV machines are considered crucial for shrinking these transistors and producing advanced semiconductors. Huawei's ambitious plan to produce 1.4nm chips would be a major step toward this goal, despite the current technological gap with TSMC.
Self-sufficiency efforts
Huawei's role in China's semiconductor self-sufficiency efforts
Shenzhen-based Huawei has been at the forefront of China's efforts to become self-sufficient in semiconductors. This comes after a years-long campaign by the US and its allies to restrict exports of advanced chips and equipment, which has somewhat hampered China's AI development. In September, Huawei announced a three-year plan to launch a series of AI chips as replacements for NVIDIA's most advanced semiconductors that are banned from entering China.
Design innovation
US sanctions impact on China and Huawei's response
Despite US sanctions making it difficult for China to produce the world's most advanced chips, Huawei hopes to design high-end chips. The company introduced the Tau Scaling Law, a new principle for chip improvement that doesn't solely rely on shrinking transistors. Tingbo unveiled this concept at the 2026 IEEE International Symposium on Circuits and Systems (ISCAS) in Shanghai on Monday.
Performance boost
Tau scaling law and its potential benefits for Huawei
The Tau Scaling Law focuses on reducing the time taken by signals and data to travel through chips and computing systems. If successful, it could give Huawei a way to boost performance and chip density despite restrictions on China's access to advanced semiconductor equipment. The company's Kirin chips, set to launch in fall 2026, will be the first to use the related architecture, LogicFolding.