huawei ceo reveals chip gap, doubles down on r&d to close the divide

2025-06-10 general

Beijing, Tuesday, 10 June 2025.
huawei’s ceo ren zhengfei admitted their ai chips trail u.s. counterparts by one generation. this revelation comes amidst u.s. export restrictions and highlights the intense competition in the ai chip market. despite this, huawei is investing 180 billion yuan annually in r&d. ren zhengfei aims to close the gap through cluster computing and domestic research. this move underscores huawei’s commitment to technological self-reliance. the company is exploring innovative strategies to overcome these challenges. this approach involves significant investment in both basic research and product development.

market reaction to huawei’s chip отставание

Ren Zhengfei’s acknowledgment of the chip gap coincides with ongoing trade negotiations between the U.S. and China [1][4]. Semiconductor stocks have shown volatility due to the uncertainty surrounding potential tariffs on imported chips [3]. An analyst at Global Securities noted the market’s sensitivity to these trade-related developments [3]. The nasdaq has experienced fluctuations, reflecting broader market reactions to the trade situation [3]. These factors collectively contribute to investor caution regarding huawei and related chinese tech stocks.

huawei’s strategy to bridge the technology gap

Despite acknowledging the отставание, ren zhengfei downplayed concerns, stating that huawei can compensate through “mathematics补physics, non-моore补моore, and cluster computing” [1][2]. This approach involves using advanced algorithms and software to enhance the performance of existing hardware [7]. Huawei’s ‘ai cloudmatrix 384’ system, which combines 384 ascend 910c chips, reportedly rivals nvidia’s gb200 nvl72 system in some metrics [1]. Such innovations are crucial for maintaining competitiveness amid export restrictions.

expert opinions and industry impact

Nvidia ceo huang renxun has recognized huawei as a significant competitor in the ai space [2]. He cautioned that u.s. export controls could backfire, potentially boosting huawei’s capabilities [1][2]. Dylan patel, founder of semianalysis, suggests that huawei already possesses the capacity to surpass nvidia’s ai systems [1]. The u.s. commerce department’s warning against using huawei’s ascend chips highlights the ongoing tensions and the potential risks for companies engaging with huawei’s technology [1].

investment in r&d and future prospects

Huawei’s substantial r&d investment, with approximately 60 billion yuan allocated to basic research without考核, signals a long-term commitment to innovation [1][4]. This investment aims to foster breakthroughs in core technologies, reducing reliance on foreign technology [2][4]. Ren zhengfei emphasized the importance of basic research, stating, “without theory, there will be no breakthrough, and we will not catch up with the united states” [1]. This strategic focus could drive future growth and enhance investor confidence over time.

implications for investors

Investors should closely monitor the developments in u.s.-china trade relations and their impact on semiconductor stocks [3]. Huawei’s ability to innovate and overcome technological barriers will be crucial for its long-term success [1][7]. While the acknowledged chip gap may create short-term uncertainty, huawei’s commitment to r&d and its focus on cluster computing and software optimization could yield positive results [1][2]. Investors need to assess the balance between risks associated with geopolitical tensions and the potential rewards from huawei’s technological advancements [3][4].

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