Huawei Defies Chip Ban with Kirin 9020 in New Mate XTs

2025-09-04 tsmc

Shenzhen, Thursday, 4 September 2025.
Huawei has launched its Mate XTs smartphone powered by the Kirin 9020 chip. This marks a significant comeback after four years amid ongoing US restrictions. The return of Huawei’s Kirin chip could shake up the market, potentially reducing Huawei’s reliance on foreign chipmakers like TSMC. The new phone also supports PC-level applications, which could boost user productivity, especially for financial software, with one executive calling the foldable screen a ‘stock trading神器’.

Kirin 9020 performance boost

The Mate XTs features the Kirin 9020 chip, paired with the HarmonyOS 5 operating system, delivering a 36% increase in overall performance [6][7]. The new chip achieves this performance through a combination of hardware, software, and cloud coordination, along with system-level optimizations [1]. The phone’s design includes a 10.2-inch 3K display and a hinge system constructed with non-Newtonian fluid materials and aerospace-grade steel [4]. The device also incorporates earthquake warning capabilities, enhanced communication technology, and satellite communication features [4].

Impact on tsmc

Huawei’s move towards self-sufficiency in chip development poses a challenge to TSMC, a major global chip manufacturer [GPT]. Geopolitical tensions have already created uncertainty in the semiconductor industry [GPT]. Huawei’s reduced reliance on TSMC could impact TSMC’s revenue and market position [alert! ‘specific revenue impact not detailed in source’]. The ability of Huawei to produce competitive chips in-house could shift the balance of power in the global electronics supply chain [alert! ‘magnitude of shift not specified in source’].

Huawei is regaining market share in China, driven by its Pura and Mate series phones and its advancements in foldable screen technology [3]. In the second quarter of 2025, Huawei’s smartphone shipments reached 12.5 million units, securing an 18.1% market share in China [3]. This put Huawei in the top spot in the domestic market, ahead of vivo, OPPO, Xiaomi, and Apple [3]. Huawei’s success in the foldable phone market is evident, with 3.74 million units shipped in the first half of 2025, capturing 75% of the market [6].

Analyst perspectives

IDC noted that the demand for foldable screen phones is shifting from early adopters to mainstream users [6]. As hardware innovation slows, software improvements will be crucial for competition, pushing the industry towards ‘software-defined hardware’ [6]. IDC analyst Guo Tianxiang described the Mate XTs as a minor update, with key improvements in the chip, camera, and stylus support [6]. The reduced price of the Mate XTs, starting at 17999 yuan, down from its predecessor, may attract more consumers [1][6].

Huawei’s financial performance

Huawei’s revenue continues to grow, supported by its device business and smart car initiatives [3]. In the first half of 2025, Huawei’s revenue reached 427.039 billion yuan, a 3.94% increase year-over-year [3]. However, net profit declined by 32% to 37.195 billion yuan due to significant investments in research and development [3]. Huawei’s R&D spending increased by 9.04%, reaching 96.95 billion yuan, or 22.7% of its total revenue [3].

Bronnen

tsmc impact kirin chip