Huawei Technologies Co. has unveiled a new semiconductor architecture, LogicFolding, which it claims will significantly narrow the technological gap with industry leader Taiwan Semiconductor Manufacturing Co. (TSMC). Huawei Semiconductor Chief He Tingbo announced the breakthrough during a chip conference, stating that the company aims to produce 1.4-nanometer chips by 2031, closing the five-year disparity with TSMC, which plans to mass-produce the same technology by 2028.
Innovation Without Cutting-Edge Tools
He emphasized that Huawei's new technology allows for significant advancements in chipmaking without relying on Dutch supplier ASML Holding NV’s extreme ultraviolet (EUV) lithography machines, which are widely considered essential for producing advanced semiconductors. ASML’s EUV machines are currently inaccessible to Chinese firms due to U.S. export controls. Huawei’s LogicFolding architecture boosts chip performance by increasing transistor count and optimizing data transmission speed, effectively compensating for the lack of state-of-the-art equipment.
"This year we have prepared a surprise for the whole industry. Not saturation, not continuation, but a big leap ahead," said He Tingbo.
Market Impact and Strategic Shift
The announcement sparked a surge in Chinese semiconductor stocks, with SMIC and Hua Hong Semiconductor Ltd. experiencing significant gains. Huawei’s Tau Scaling Law, the principle behind LogicFolding, challenges the industry’s reliance on Moore’s Law, which predicts transistor doubling every two years. He noted that Huawei’s scaling efforts based on Moore’s Law plateaued six years ago due to U.S. sanctions, prompting the company to develop its own methodology.
Huawei’s innovation could reshape China’s semiconductor industry, providing a new framework for overcoming technological barriers imposed by export controls. While the long-term impact remains uncertain, the company’s progress underscores its determination to advance domestic chip capabilities despite geopolitical constraints.