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Since the establishment of HiSilicon in 2004, Huawei has made remarkable achievements in chip R&D. After more than 10 years of continuous investment and hard work, Huawei has gradually launched many breakthrough products, including communication network processors Yingtan, Jiutian and Taixing, server processors Kunpeng, artificial intelligence chips Ascend, automotive electronics chips Kirin, consumer chips Kirin 9000, and so on. These chips are widely used in multiple scenarios such as smart phones, 5G base stations, cloud servers, network switches, face recognition terminals, and autonomous vehicles, forming a relatively complete chip product line. Huawei's success is due to its advanced product technology and in-depth market insight. For example, in the field of 5G communications, Huawei, as a pioneer of global commercial 5G, has a clear understanding of the requirements and standards of 5G networks. As a result, Huawei is able to develop its own 5G chips and leverage synergies in technology and products. The consumer chip Kirin 9000 closely integrates the actual needs of Huawei's terminals and is equipped with the latest GPU architecture, fully demonstrating the organic combination of technology and market. Despite the impact of supply disruptions from some foreign companies, Huawei has initially completed the full-scenario layout and built a relatively complete semiconductor industry chain by continuously increasing R&D investment. Huawei's strategic decision to adopt all self-developed chips in 2024 will further enhance the R&D strength and scale effect of its own chips.
China's integrated circuit industry started late, and in the early days, it mainly relied on foreign technology and markets. However, since the introduction of the national chip industry support policy in 2009, various domestic chip design and manufacturing enterprises have sprung up. Among them, leading enterprises such as Huawei have increased investment and layout, forming the head force of the semiconductor industry chain. At the same time, SMIC, YMTC and other companies have built large-scale production capacity in the field of chip manufacturing and packaging. According to the statistics of the International Semiconductor Industry Association (SEMI), as of 2021, China has become the world's second largest chip production capacity distribution country, second only to South Korea. Not only that, but China has also made great progress in chip design and manufacturing processes. For example, SMIC is a leader in advanced manufacturing processes, with its 7nm process technology leading the rest of the world, and YMTC's 128-layer 3DNAND flash memory technology also leading the world. This provides high-level foundry services for more Chinese chip manufacturers. In addition, companies such as Huawei, SMIC, and UNISOC have also maintained a leading level in key technologies such as independent GPUs, AI chips, and RISC-VCPU. It is foreseeable that as Huawei further matures its self-developed chip technology and fully applies its self-developed chips in 2024, it will put forward higher requirements for relevant supporting enterprises and industrial resources, and promote the formation of a sustainable domestic semiconductor industry ecosystem.
Although leading companies such as Huawei have made great progress in the field of chip design, they still rely heavily on imports in materials, equipment, manufacturing and other links. This brings certain industrial security risks, and also restricts the coordination and rapid iteration of the industrial chain. Huawei's strategic decision to fully adopt self-developed chips in 2024 will promote the systematic upgrading of the domestic chip industry chain and form a higher-level independent and controllable system, which is embodied in the following aspects:
1.Promote the development and growth of domestic chip design enterprises: The application of Huawei's self-developed chips will provide more domestic chip design companies with opportunities to learn advanced technologies, promote the improvement of the entire design community, and form a pattern of healthy competition.
2.Drive the catch-up of materials and equipment: To meet the mass production requirements of top chips, higher requirements for materials and equipment are put forward, which will help stimulate the technological innovation of related enterprises, accelerate the progress of domestic equipment, and promote the breakthrough of disruptive technologies.
3.Drive the mature development of manufacturing and testing services: As "consumers", leading enterprises have very high engineering investment and operating costs for chip manufacturing. Their high standards and demand for manufacturing services will promote the rapid improvement of foundry standards.
4.Promote the further improvement of industrial policies: The technological breakthroughs and industrial needs of leading enterprises will promote the improvement of relevant fiscal and tax, talent, R&D and intellectual property policies, and create a better development environment.
It is foreseeable that Huawei's strategic decision to fully use self-developed chips in 2024 will further enhance the independent innovation capability of China's chip industry and the collaborative efficiency of the industrial chain, promote the transformation of the integrated circuit industry from large to strong, and become an important basic industry to support high-quality economic development.
As a key basic material for digital transformation, chips are becoming increasingly important in all walks of life with the development of science and technology. As a world-renowned high-tech company, Huawei has been increasing its investment in chip research and development since the establishment of HiSilicon in 2004, and has launched a series of chip products, including communication network processors, server processors, artificial intelligence chips, automotive electronic chips, and consumer chips. These chip products are widely used in smart phones, 5G base stations, cloud servers, network switches, face recognition terminals, autonomous vehicles and other fields, and have built a relatively complete chip product line. For example, in the field of 5G communications, Huawei was the key contributor to the earliest approval of commercial 5G in the world, and independently developed 5G chips, giving full play to the synergistic advantages of technology and products. In addition, Huawei's rapid growth in the chip field is also due to the company's insight into market demand and technology trends. Despite the impact of some foreign companies cutting off the chain, Huawei has continuously increased R&D investment, and has initially completed the layout of all scenarios, building a relatively complete semiconductor industry chain. Huawei's announcement of the strategic move to use all self-developed chips in 2024 indicates that China's integrated circuit industry will usher in new development opportunities. China's integrated circuit industry mainly relied on foreign technology and markets in its initial stage, but with the country's support policies for the chip industry, domestic chip design and manufacturing enterprises continue to emerge. While leading companies such as Huawei have increased investment and layout, SMIC and YMTC have also made great progress in manufacturing and packaging. According to the data, China has become the world's second largest chip production capacity distribution country, and its advanced process technology and flash memory technology are ahead of the world level. Huawei's strategic initiatives will further enhance its independent and controllable capabilities, promote the development and growth of domestic chip design companies, and drive the catch-up of materials, equipment, manufacturing, and testing services. This will boost the modernization of the entire industrial chain and promote the formation of a domestic semiconductor industry ecosystem. It is expected that Huawei's strategic initiatives will play a positive role in promoting the development of the domestic chip industry chain. As an important foundation for digital transformation, chips are of great significance to economic development, and with Huawei's demonstration effect, China's integrated circuit industry is expected to move towards a more powerful, independent and controllable stage of development.
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