Huawei’s New Phone Runs Latest Version of Made-in-China Chip

(Bloomberg) — Huawei Technologies Co.’s latest smartphones carry a version of the advanced made-in-China processor it revealed last year, independent analysis revealed, underscoring the Chinese company’s ability to sustain production of the controversial chip.

The Pura 70 series Huawei unveiled last week sports the Kirin 9010 processor, consultancy TechInsights found in a teardown of the device. That’s a newer version of the Kirin 9000s made by Semiconductor Manufacturing International Corp. for the Mate 60 Pro, which alarmed officials in Washington who thought a 7-nanometer chip beyond China’s capabilities.

Huawei has enjoyed a resurgence since the Mate’s August debut, riding a wave of celebration around its ability to realize sophisticated semiconductor manufacturing despite escalating US technology export curbs. Its Pura 70 series sold out within two days of their launch, according to market checks conducted by Jefferies analysts led by Edison Lee. US officials are now weighing additional sanctions intended to ring-fence the company and China’s semiconductor ambitions more broadly.

TechInsights, which was the first to identify the original 9000s in conjunction with Bloomberg News, said it found “with high confidence” that the Pura contained a Huawei Kirin 9010 fabricated using SMIC’s so-called 7nm N+2 process, an enhanced version of typical 7nm manufacturing.

iPhone Slumped to Third in China After Leading in Q1 a Year Ago |

Formerly known as the P series, the Pura line has traditionally sold on the strength of their camera capabilities. Giving domestic users a fresh option could apply further pressure on the iPhone, which isn’t due for an upgrade until September. Huawei is likely to see further market share gains ahead of the June 18 sales festival, Jefferies said.

For Huawei, it’s another step toward rebuilding a consumer business devastated by Trump-era sanctions. The company was roughly on par with Apple Inc. in terms of Chinese market share in the first quarter, underscoring the way it’s eroded the iPhone maker’s domestic market share in past months.

–With assistance from Gao Yuan.

(Updates with Jefferies market checks in third paragraph)

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