Huawei Chips Are One Generation Behind US but Firm Finding Workarounds, CEO Says 

A view shows a Huawei logo at Huawei Technologies France headquarters in Boulogne-Billancourt near Paris, France, January 9, 2025. (Reuters)
A view shows a Huawei logo at Huawei Technologies France headquarters in Boulogne-Billancourt near Paris, France, January 9, 2025. (Reuters)
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Huawei Chips Are One Generation Behind US but Firm Finding Workarounds, CEO Says 

A view shows a Huawei logo at Huawei Technologies France headquarters in Boulogne-Billancourt near Paris, France, January 9, 2025. (Reuters)
A view shows a Huawei logo at Huawei Technologies France headquarters in Boulogne-Billancourt near Paris, France, January 9, 2025. (Reuters)

Huawei Technologies' chips are one generation behind those of US peers but the firm is finding ways to improve performance through methods such as cluster computing, Chinese state media quoted CEO Ren Zhengfei as saying on Tuesday.

The chipmaker invests 180 billion yuan ($25.07 billion) in research annually and sees promise in compound chips - chips made from multiple elements - Ren said in an interview with the People's Daily newspaper of the governing Communist Party.

There is "no need to worry about the chip problem", Ren said, addressing concerns stemming from US export controls.

The article, published on the front page of the newspaper, come as top US and Chinese officials are set to resume trade talks for a second day in London where topics such US tech restrictions on China are expected to be discussed.

Since 2019, a slew of US export curbs, aimed at curbing China's technological and military advancements, have restricted Huawei and other Chinese firms from accessing high-end chips and the equipment needed to produce them from abroad.

Ren's comments are the first ever from him or Huawei about the company's advanced chipmaking efforts, which have become a flashpoint in US-China tensions.

Huawei is just one of many Chinese chipmakers, Ren said in the interview, adding: "The United States has exaggerated Huawei's achievements. Huawei is not that great. We have to work hard to reach their evaluation."

"Our single chip is still behind the US by a generation. We use mathematics to supplement physics, non-Moore's law to supplement Moore's law and cluster computing to supplement single chips and the results can also achieve practical conditions. Software is not a bottleneck for us," he said.

Cluster computing is when multiple computers work together. Moore's law refers to the speed of chip advancement.

HUAWEI'S LAUNCHES

Huawei's Ascend series of AI chips compete in China with offerings from Nvidia, the global leader in AI chips.

The US commerce department last month said the use of Ascend chips would be a violation of export controls.

Nvidia's AI chips are more powerful than Huawei's but the company has been barred by Washington from selling its most sophisticated chips to China, causing it to lose significant market share to Huawei.

In April, Huawei launched "AI CloudMatrix 384", a system that links 384 Ascend 910C chips in a cluster that companies can use to train AI models, which has been described by analysts as able to outperform Nvidia's GB200 NVL72 system on some metrics.

Dylan Patel, founder of semiconductor research group SemiAnalysis, said in an article that month that it meant that Huawei and China now had AI system capabilities that could beat Nvidia.

Nvidia and the US commerce department did not immediately respond to a request for comment on Ren's remarks.

Ren also said about a third of Huawei's annual research spending went to theoretical research while the rest was spent on product research and development.

"Without theory, there will be no breakthroughs, and we will not catch up with the United States."



Samsung, SK Urge Employees to Cut Car Use Amid Rising Energy Risks

FILE - The logo of the Samsung is seen at the Samsung Electronics' Seocho building in Seoul, South Korea, Friday, July 5, 2024.  (AP Photo/Lee Jin-man, File)
FILE - The logo of the Samsung is seen at the Samsung Electronics' Seocho building in Seoul, South Korea, Friday, July 5, 2024. (AP Photo/Lee Jin-man, File)
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Samsung, SK Urge Employees to Cut Car Use Amid Rising Energy Risks

FILE - The logo of the Samsung is seen at the Samsung Electronics' Seocho building in Seoul, South Korea, Friday, July 5, 2024.  (AP Photo/Lee Jin-man, File)
FILE - The logo of the Samsung is seen at the Samsung Electronics' Seocho building in Seoul, South Korea, Friday, July 5, 2024. (AP Photo/Lee Jin-man, File)

South Korean tech giants Samsung Electronics and SK Group said they were asking employees to curb private car use and follow fuel-saving measures after South Korea rolled ⁠out emergency energy-conservation steps ⁠amid instability in Middle Eastern energy supplies.

Internal notices showed the companies encouraging car-use restrictions ⁠such as a five and 10-day vehicle rotation system, reduced parking availability and other energy-saving practices at offices from Thursday for Samsung and from March 30 ⁠for ⁠SK.

The moves follow government guidance aimed at cutting fuel consumption as concerns grow over prolonged disruptions linked to the Iran-related energy crisis.


Epic Games to Cut More Than 1,000 Jobs as Fortnite Usage Falls

The Epic Games logo, maker of the popular video game "Fortnite", is pictured on a screen in this picture illustration August 14, 2020. (Reuters)
The Epic Games logo, maker of the popular video game "Fortnite", is pictured on a screen in this picture illustration August 14, 2020. (Reuters)
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Epic Games to Cut More Than 1,000 Jobs as Fortnite Usage Falls

The Epic Games logo, maker of the popular video game "Fortnite", is pictured on a screen in this picture illustration August 14, 2020. (Reuters)
The Epic Games logo, maker of the popular video game "Fortnite", is pictured on a screen in this picture illustration August 14, 2020. (Reuters)

Epic Games said on Tuesday it would cut more than 1,000 jobs after a drop in engagement for "Fortnite," its flagship title, the latest cuts in the video-game industry whose growth has stalled amid economic uncertainty.

The cuts, along with more than $500 million in savings from lower contracting and marketing spending and unfilled roles would put the company in "a more stable place," Chief ‌Executive Tim Sweeney said ‌in a note to employees.

The ‌cuts ⁠are the latest ⁠in the gaming sector, where companies have faced weaker growth as consumers have been sticking with proven titles amid economic uncertainty.

But even those, especially live services games, which depend on a steady stream of new content to ⁠keep players engaged, are now showing signs ‌of cracks.

"We've had ‌challenges delivering consistent Fortnite magic," Sweeney said, adding "market conditions ‌today are the most extreme" since the early ‌days of the company founded in 1991.

"The layoffs aren't related to AI," Sweeney noted amid industry worries the technology could replace video-game developers.

The move marks ‌Epic's second major round of layoffs in three years. In September 2023, ⁠the company ⁠cut about 830 jobs, or roughly 16% of its workforce.

It was not immediately clear what percentage of staff would be impacted by Tuesday's announcement.

The gaming sector has faced mounting pressure. In September, Electronic Arts laid off hundreds of workers and canceled a Titanfall game that was in development at its Respawn Entertainment unit, according to media reports. Amazon's broader job cuts late last year also affected its gaming division.


Chinese Firms' Involvement in 5G Network May Deter Investors, EU Warns Vietnam

EU Commissioner for International Partnerships Jozef Sikela speaks during the EU-Vietnam business and investment forum in Hanoi on March 24, 2026. (Photo by Nhac NGUYEN / AFP)
EU Commissioner for International Partnerships Jozef Sikela speaks during the EU-Vietnam business and investment forum in Hanoi on March 24, 2026. (Photo by Nhac NGUYEN / AFP)
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Chinese Firms' Involvement in 5G Network May Deter Investors, EU Warns Vietnam

EU Commissioner for International Partnerships Jozef Sikela speaks during the EU-Vietnam business and investment forum in Hanoi on March 24, 2026. (Photo by Nhac NGUYEN / AFP)
EU Commissioner for International Partnerships Jozef Sikela speaks during the EU-Vietnam business and investment forum in Hanoi on March 24, 2026. (Photo by Nhac NGUYEN / AFP)

The involvement of Chinese vendors in the rollout of Vietnam's 5G network may deter foreign companies from investing in the Southeast Asian nation, a top EU official said on Tuesday.

European telecom firms Ericsson and Nokia are developing Vietnam's core 5G network, but in recent months Vietnamese state-owned operators have awarded 5G contracts to Chinese rivals Huawei and ZTE.

That marks a notable shift following years of caution towards China, and the change has ⁠sparked concerns among ⁠Western officials.

"Be careful with dependencies in strategic areas," EU Commissioner for International Partnerships Jozef Sikela said when asked about the Chinese contracts.

"5G is the new battlefield," he told Reuters on the sidelines of an EU-Vietnam investment forum in Hanoi. "Through the network you can access a lot and you can control a lot, ⁠and you have to be always careful who is your trusted vendor."

"If investors have doubts about the security of their data, they might decide not to take the risk and not to invest," he said.

Vietnam's foreign ministry and the Chinese embassy in Hanoi did not immediately reply to emailed requests for comment.

Vietnam is a major industrial hub and hosts large manufacturing operations of big Western multinationals, including European firms Adidas and Lego. Its decades-long economic boom hinges on foreign investment.

The European Union and European states ⁠on Tuesday ⁠announced a new package of investment in Vietnam's transport and energy sector.

Sikela said risks to future investments from unsecure networks were at this stage theoretical, and noted that several European countries allowed Chinese telecom vendors in the past.

Huawei and ZTE are banned from the telecom networks of several European countries and in the United States, because they are seen as risks to national security.

The companies have criticized the restrictions as unfair, rejecting the concerns as baseless.

Vietnamese officials have said that Chinese telecom equipment is reliable and cheaper, while downplaying security risks. Additional contracts with Chinese firms are under discussion, Reuters reported earlier this month.