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Another ‘DeepSeek moment’? Huawei milestone alters China trajectory in chip race: analysts
Chip advance marks big step accelerating China’s semiconductor self-reliance push and promises leaps in AI computing power
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Iris Dengin ShenzhenandAnn Caoin ShanghaiPublished: 11:00am, 27 May 2026Huawei Technologies’ unveiling of a chip architectural workaround to bypass US sanctions marks a major step towards China’s semiconductor self-sufficiency, giving Beijing powerful new leverage in its tech tug of war with Washington, analysts say.
The Chinese tech giant captured global attention on Monday by introducing the new Tau (τ) Scaling Law, which it said lay the groundwork for Huawei to achieve transistor density equivalent to a 1.4-nanometre process in high-end chips by 2031. If proven, the advancement would significantly narrow the gap with global semiconductor leaders at the cutting edge of chip development.
With the new law, Huawei is targeting significant performance improvements in both smartphone chips and artificial intelligence computing systems.Advertisement
“The US will have less leverage over export control as China becomes more self-sufficient,” said Gary Ng, senior economist at Natixis Corporate and Investment Bank, although he cautioned that the law still needed to be “tested in practice”.
US-led sanctions currently block China’s semiconductor industry from accessing the most advanced chipmaking technologies, notably extreme ultraviolet (EUV) lithography machines needed for 3nm nodes and below.Advertisement
Huawei’s new trajectory promises to bypass this critical bottleneck. He Tingbo, chairwoman of the Huawei Scientist Committee and president of its semiconductor business department, said cutting-edge EUV tools would no longer be necessary to achieve these advanced nodes.
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