Overview

• Huawei prioritizes production of Ascend AI processors over Kirin smartphone chips due to limited production capacity and the strategic importance of AI technology.
• SMIC is on track to produce 5nm chips for Huawei smartphones, aiming for chip self-sufficiency despite Western curbs.
• Apple faces increased competition in China as domestic chipmakers like SMIC enable Huawei and other brands to produce advanced smartphones.
• The production of advanced chips by SMIC comes at a higher cost, with yields significantly lower than those of TSMC.
• Huawei's focus on AI and smartphone performance upgrades demonstrates China's determination to advance its semiconductor capabilities despite international restrictions.