U.S. Commerce Secretary Gina Raimondo dismissed Huawei Technologies Co.‘s latest chip technology as significantly lagging behind the United States.
What Happened: On Sunday, in an interview with CBS News’ 60 Minutes, Raimondo, a member of President Joe Biden’s cabinet, downplayed the significance of Huawei’s new chip technology, stating that it underscores the success of the Biden administration’s export controls on China, reported Bloomberg.
During her visit to China in August, Huawei unveiled a smartphone powered by a homegrown advanced 7-nanometer chip, a technology that is reportedly several generations ahead of what the U.S. had hoped to prevent China from achieving.
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“It’s years behind what we have in the United States,” Raimondo said, adding, “We have the most sophisticated semiconductors in the world. China doesn’t. We’ve out-innovated China.”
Raimondo has pledged to take the “strongest possible” action to safeguard U.S. national security. Alan Estevez, the commerce undersecretary, has suggested that Huawei’s chipmaking partner, Semiconductor Manufacturing International Corp., may have “potentially” violated U.S. law.
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Why It Matters: The U.S.-China tech rivalry has been a major theme in recent years, with the U.S. imposing stringent export controls on Chinese tech companies. This has led to a significant impact on the global semiconductor industry, with China criticizing the U.S. chip export rules.
Earlier this month it was reported that Beijing remains a crucial market for U.S. chipmakers despite the tensions. According to data provided by S&P Global, the U.S. has implemented export controls since October 2022.
However, despite these measures, companies such as Intel, Broadcom, Qualcomm, and Marvell Technology have reported higher revenues from China compared to the U.S. These controls primarily focus on AI-related chips, while allowing the sale of most other types of chips to Chinese entities.
Meanwhile, the U.S. has reportedly been considering sanctions on Chinese firms due to Huawei’s ambitious AI chip developments, further escalating the tech rivalry.
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