Huawei CEO Says Chip Gap with US Workarounds in Progress

Shenzhen, China—10 June 2025— Huawei Technologies’ founder and CEO Ren Zhengfei admits the company’s semiconductor technology may be “one generation behind” the United States. Despite the ongoing U.S. sanctions, Ren claims the company has come up with solutions. These efforts will help Huawei remain relevant in the global race to be a leader.

In an interview with Chinese media in China on Monday morning, Ren stressed that, while the hardware of Huawei might be behind U.S. companies like Nvidia in some aspects, the company is employing diverse methods to make up the gap. These methods include deploying cluster computing technology, constructing complex chips, and improving software-driven algorithms to address the shortcomings in hardware.

“Even though we are a generation behind in semiconductor manufacturing, we are utilizing intelligent design and computing clusters. These enable us to achieve comparable performance,” Ren said.

Huawei is making the announcements while still facing U.S. export controls first implemented in 2019. The restrictions severely restricted its access to the latest chips and tools. The sanctions have impacted Huawei’s ability to source the most cutting-edge chips as well as contract global foundries that depend heavily on U.S.-based equipment.

Despite these limitations, Huawei has increased its internal R&D budget. It invests more than 180 billion dollars (approximately 25 billion ) every year. This money helps develop autonomous and innovative fundamental technologies, such as artificial intelligence and telecommunications.

Ren also denied reports from abroad that exaggerate Huawei’s capabilities. Ascend AI chips, noting that, while they aren’t able to compete with Nvidia’s top-performing GPUs . However, they’re well-suited for certain AI training tasks in China.

“We’re not trying to surpass the U.S. overnight. We’re addressing issues with our current capabilities and are quickly adapting,” Ren added.

The fact that Huawei is able to compete without direct access to cutting-edge Western technology is now a symbol of China’s larger push towards tech self-sufficiency> Analysts agree that while Huawei’s achievements are impressive, reaching a level playing field with U.S. chipmakers with regard to fabrication and scalability is a long-term issue.

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