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Huawei Beats US Sanctions With Chip Tool Breakthrough

The Chinese tech giant lost access to the software in 2020 due to sanctions imposed by the US and saw its smartphone sales tank as a result

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Huawei, a major supplier of equipment used in 5G telecommunications networks, has been the target of successive rounds of US export controls. Photo: Reuters


Chinese tech giant Huawei has beaten US sanctions to make breakthroughs in electronic design automation (EDA) tools for chips produced at and above 14-nanometre technology, Caijing magazine reported on Friday citing a speech by a senior executive.

Huawei will complete testing on the tools this year, rotating company chairman Xu Zhijun said in a speech on February 28, the Chinese financial news magazine reported. Huawei has developed 78 tools related to chip hardware and software, the report added.

The announcement comes as Huawei and other Chinese technology companies rush to localise their supply chains in the face of mounting US sanctions.


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Huawei did not immediately reply to a Reuters request for comment.

According to a transcript of Xu’s remarks published by Caijing, Huawei cooperated with domestic EDA companies to create the software, “basically realising the localisation of EDA tools above 14nm.”

Chip design companies use EDA software to produce the blueprints for chips before they mass manufacture them at fabs.

Huawei will also let partners and customers use the software, Xu added.


Sanctioned software

Chips produced at the 14nm level were first introduced in smartphones in the mid-2010s. They are two to three generations behind leading-edge technology.

Huawei, a major supplier of equipment used in 5G telecommunications networks, has been the target of successive rounds of US export controls since 2019. Sanctions have restricted its supply of chips and chip-design tools from US companies.

Three overseas firms dominate the EDA software market. Two of them – Cadence Design Systems and Synopsys – are headquartered in the United States, and the third – Mentor Graphics – is owned by Germany’s Siemens AG.

China is home to a handful of domestic EDA software makers, but experts do not consider them globally competitive.

All three overseas EDA companies fell subject to Washington’s sanctions against Huawei in 2020.

When the restrictions went into effect, the company’s chip design division lost access to software and updates that would enable it to design low-node processors for its smartphones, as well as access to advanced manufacturing tools at chip production fabs.

The company’s smartphone division saw sales tank as a result.


  • Reuters, with additional editing by Vishakha Saxena


Also on AF:

US Blocking Export of 4G Chips, Items for China’s Huawei

We Have Emerged From Crisis, Says Huawei Chairman Eric Xu

Huawei on Comeback Trail After US Sanctions Blow, Says Chief

Huawei Dominates Global Tech Fair Despite US Sanctions – US News

China Pulls Off Chip Breakthrough in Sanctions Blow – Telegraph



Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at [email protected]


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