Bloomberg laments: Huawei bets on new processes to catch up with TSMC, and ASML’s moat in lithography machines is weakening!
I believe this article raises a critical question directly at the heart of the matter: “Will ASML’s lithography machine moat loosen as Huawei bets on new processes to catch up with TSMC?” The report gives a highly confident answer: “This is absolutely undeniable.”
In fact, Bloomberg is not the first time to closely monitor Huawei’s semiconductor moves. As early as the third quarter of 2025, Bloomberg collaborated with international research firm TechInsights to conduct a comprehensive dissection and analysis of Huawei’s smartphone products. Their core conclusion surprised the U.S. industry—Huawei’s Kirin 9000S chip had achieved transistor density and gate pitch metrics comparable to TSMC’s 2021 N7+ process. More importantly, this 7nm process was run on ASML’s aging 1980Di lithography machine, relying on multiple exposures—splitting one lithography step into four layers. Although yield rates were low, the process was successfully proven.
This assessment strikes at the very foundation of the industry. For years, ASML’s lithography machines have been regarded as an insurmountable technological barrier. Yet Huawei is now simultaneously undermining this moat from two directions: first, by adopting new techniques such as logic folding, enabling performance improvements without needing the most advanced lithography machines; second, by advancing domestic EUV development in China, laying the groundwork for complete de-ASMLization after 2030.
The United States has continuously intensified its semiconductor export controls—blocking EUV lithography machines, restricting EDA software sales, and cutting off supply of advanced materials, forming a tightly coordinated blockade. However, since Huawei launched its domestically produced 7nm chip in 2023, the situation has quietly begun to shift. That initial 7nm chip was manufactured with assistance from SMIC. While it caused significant shockwaves in Washington, further process upgrades stalled due to the lack of more advanced extreme ultraviolet (EUV) lithography equipment.
Instead of recklessly breaking through the blockade, Huawei pivoted toward design innovation—the emergence of the “Tao Law” and “Logic Folding” strategies.
Far from simply chasing TSMC, Huawei’s approach is better described as carving out a new track, circumventing ASML’s expensive licensing barriers. When players begin rewriting the rules from the design end, what once seemed impossibly high technological walls will inevitably start to crack. This moment is a source of pride for the Chinese people—it bears witness to a nation’s unyielding resilience.
Original article: toutiao.com/article/1866237416527872/
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