Huawei has made progress in developing its own software tools for designing advanced chips, up to 14 nanometers, in an effort to circumvent US sanctions and reduce reliance on American technology. The company's internal teams collaborated with Chinese partners to create the necessary tools for electronic design automation (EDA) software, which will be verified this year. The move is part of a broader push by Chinese hardware technology providers to replace US components and software, including EDA tools dominated by Cadence Design Systems and Synopsys. Huawei's efforts have included the development of 78 tools over the past three years to replace foreign products.
Chinese President Xi Jinping has emphasized the importance of developing a self-sufficient supply chain, particularly in semiconductors, as the US tightens China's access to critical foreign technologies. Although 14nm is four generations behind the latest commercially available products, it is the second-best technology in China, where Semiconductor Manufacturing International Corp. is capable of producing 7nm chips.
Huawei lost access to many chips and the latest semiconductor design tools after the Trump administration blacklisted the company in 2019 due to national security concerns. These sanctions contributed to the downfall of Huawei's smartphone business, which was once the world's largest. To develop its own chip design tools, Huawei has been recruiting experienced engineers to make progress in core technologies.
While Huawei can purchase mature semiconductors from companies like Qualcomm, it is almost impossible for the company to directly order chips from contract chip manufacturers like Taiwan Semiconductor Manufacturing Co. due to existing US regulations that prohibit the use of American technology to produce new semiconductors for Huawei without a license. As a result, leading Chinese foundries such as SMIC and Hua Hong Semiconductor Ltd. are also unable to supply Huawei, as they still rely on American production equipment.