Huawei's Ren Zhengfei minimizes US chip export restrictions impact in Chinese negotiations

Huawei's founder Ren Zhengfei has dismissed the impact of US restrictions on chip exports to China in an article in the Chinese state-run newspaper People's Daily. Ren suggested that Chinese companies can use techniques such as chip encapsulation or stacking to achieve similar results to advanced semiconductor technology. He also expressed confidence in China's ability to make progress in AI and software, particularly in an open-source environment. The article coincides with delicate US-China negotiations aimed at easing tensions over technology exports and rare earth element shipments.

Huawei Technologies Co. founder Ren Zhengfei has dismissed the impact of US restrictions on chip exports to China in a recent article published in the Chinese state-run newspaper People's Daily. In the article, Ren suggested that Chinese companies can use techniques such as chip encapsulation or stacking to achieve results similar to advanced semiconductor technology. He also expressed confidence in China's ability to make progress in AI and software, particularly in an open-source environment.

The article coincides with delicate US-China negotiations aimed at easing tensions over technology exports and rare earth element shipments. Ren's statements come as the US continues to impose restrictions on chip design programs for Chinese firms, while China seeks to develop high volumes of sophisticated semiconductors.

Ren, a former People’s Liberation Army officer, has emerged as one of the tech sector’s most prominent voices since the first Trump administration added Huawei to the so-called Entity List. This move significantly curtailed Huawei’s access to US technologies, initially walloping the business and speeding its exit from several major markets. However, Huawei has since regained market share in smartphones, developed a more advanced process than the US thought possible, and is now making inroads into the AI and EV software markets.

Huawei has been investing heavily in research and development, with a focus on AI and semiconductor technology. In March, Nvidia CEO Jensen Huang praised Huawei as China's "most formidable technology company," highlighting the potential of Huawei's Ascend line of AI chips. However, Ren has stated that Huawei's chips remain "one generation behind" those of US competitors.

The US has imposed restrictions on the use of Huawei's Ascend chips, citing potential breaches of export control regulations. Despite these restrictions, Huawei has continued to make advancements in AI and semiconductor technology, demonstrating its ability to innovate and adapt in the face of adversity.

As the US and China continue their trade negotiations, the future of technology exports and rare earth element shipments remains uncertain. However, Ren's statements suggest that China is confident in its ability to make progress in AI and semiconductor technology, even in the face of US restrictions.

References:
[1] https://www.benzinga.com/markets/tech/25/06/45855054/nvidias-jensen-huang-once-called-huawei-chinas-most-formidable-tech-company-but-ceo-ren-zhengfei-says-its-chips-still-lag-behind-us-rivals
[2] https://www.business-standard.com/world-news/huawei-founder-dismisses-impact-of-us-chip-curbs-as-trade-talks-proceed-125061000140_1.html
[3] https://economictimes.indiatimes.com/tech/technology/huawei-founder-waves-off-us-chip-curbs-while-trade-talks-proceed/articleshow/121742287.cms