[Apple Shockwave](31) 'Huawei's New Product is a Declaration of Talent Development'... China's 'Chip Goddess' Heating Up

China to Make Female Scientists in Their 30s Semiconductor Heroes
Promoting Domestic Semiconductor Talent Development to Overcome US Regulations
iPhone 15 Launch Lacks Excitement, Attention Shifts to Huawei's New Product Launch
Huawei Begins Counterattack Against US-Taiwan Apple Silicon Alliance

Editor's Note[Apple Shockwave] is a content series that examines the upheaval caused by Apple entering the semiconductor market. You might wonder why Apple is involved in semiconductors. Apple is no longer just a company that makes smartphones and computers. After long efforts starting from the late founder Steve Jobs, Apple has designed world-class semiconductors used in mobile devices. If Intel was the leader in the PC era, Apple has become the top predator in the mobile era semiconductor ecosystem. Amid the global semiconductor supply chain crisis and massive investments in semiconductor production facilities, we will carefully examine the upheaval and prospects in the semiconductor market brought about by Apple Silicon to broaden our readers' insights. Apple Shockwave will visit readers every Saturday. After more than 40 installments, it will be published as a book.

"On September 25, 2021, Meng Wanzhou returned to China. On September 25, 2023, Huawei will hold a new product launch event. Huawei has returned after two years." (Hu Xijin, former editor-in-chief of Global Times)

"We have a chip goddess."

The semiconductor competition between the U.S. and China is intensifying. Huawei boldly unveiled the Mate60 Pro using 7nm semiconductors and now has announced a major new product launch event. The timing is significant. The event is scheduled for the 25th, the same day Meng Wanzhou, daughter of Huawei founder Ren Zhengfei, was detained in Canada due to U.S. sanctions and returned home. On the second anniversary of Meng Wanzhou's return, Huawei is signaling a counterattack against the U.S.

Huawei's launch event may attract more international attention than Apple's iPhone 15 launch. Through Apple and Huawei, key IT companies representing the U.S. and China, we can anticipate the direction of the semiconductor competition between the two countries. A new structure opposing the TSMC-Apple semiconductor alliance may be forming in China.

Professor Huang Qianqian of Peking University, who is gaining attention as the semiconductor goddess of China. Professor Huang received the Early Career Award from the Institute of Electrical and Electronics Engineers in 2019 when she was 30 years old. Photo by Peking University Facebook

Hu Xijin, former editor-in-chief of the state-run Global Times who conveys the Chinese government and Communist Party's stance on Huawei's launch, cleverly linked Meng Wanzhou's return with Huawei's comeback in the smartphone market. Hu emphasized that Huawei has returned two years after Meng Wanzhou's return. His interest suggests that this issue goes beyond corporate competition; it is a matter of national pride between the U.S. and China.

Previously, Apple Shockwave introduced that the background of Huawei's counterattack involves Liang Mengsong, CEO of SMIC. The consensus is that this is not just SMIC's effort. The determination of Ren Zhengfei and Meng Wanzhou to challenge U.S. pressure by pouring massive funds into R&D cannot be ignored. Huawei's R&D investment in 2020 was reportedly about 30 trillion KRW.

While Liang Mengsong contributed through advanced process miniaturization, Huawei is presumed to have strengthened the design capabilities of its subsidiary HiSilicon to mount a counterattack.

Former Global Times editor Hu Xijin, a leading figure in promoting the Chinese regime, linked Huawei's new product launch event with the second anniversary of Meng Wanzhou, Huawei's Vice Chairwoman, returning to China. Vice Chairwoman Meng Wanzhou was released from U.S. detention on September 25, 2021, and upon her return, she greeted those who welcomed her while wearing a red outfit symbolizing China. Huawei has announced that the new product launch event will take place on September 25, the anniversary of Meng Wanzhou's return. Photo by Hu Xijin X.

Who developed HiSilicon's capabilities? It cannot be definitively stated, but recent trends in China point to one person. China is a communist country, skilled in propaganda. Propaganda needs a target and a secret weapon, named the 'Chip Goddess.' The protagonist is Huang Qainqain, a guiding professor at Peking University.

In her early 30s, Huang Qainqain is promoted in China as a young semiconductor expert. She entered Peking University at 17 and reportedly grew into a top semiconductor expert without studying abroad. She holds numerous patents. In 2019, she received the Early Career Award from the Institute of Electrical and Electronics Engineers (IEEE).

Chinese media report that Huang Qianqian contributed to HiSilicon's packaging technology.

Chinese media emphasize that Huang Qainqain contributes to the semiconductor industry's development domestically without overseas study experience. This is interpreted as an attempt to stress semiconductor technological independence. However, this should not be taken at face value. China's characteristic exaggeration should be considered. It may be propaganda to emphasize patriotism and competitiveness.

What is certain is that Huang Qainqain is said to have transferred advanced chip stacking technology to Huawei's subsidiary HiSilicon. This move is seen as a response to TSMC's lead in packaging technology that keeps competitors at bay.

Ren Zhengfei, Huawei's chairman, reportedly said this about Huang Qainqain, according to Chinese media and netizens:

"Huang Qainqain is the light of Huawei's chips."

Ren Zhengfei, Chairman of Huawei

After the Mate60 Pro announcement, Ren Zhengfei mentioned the importance of advanced technology and specialized talent in a post on the company website.

"Huawei stocks talent, not dollars. The ultimate goal is to have our own talent pool. We must create an environment where talent can grow, give freedom to top experts, and allow them to unleash their energy."

Ren Zhengfei's confidence is also reflected in stock prices. Following the 7nm chip issue, SMIC's stock price is recovering from recent weakness and seeking an upward trend. This contrasts with the declining stock prices of Western semiconductor companies after the Mate60 Pro's release.

The importance of equipment in the semiconductor industry is clear. Early semiconductor companies made their own equipment, but now specialized companies support foundries and integrated semiconductor companies. Leading equipment giants include Applied Materials and Lam Research from the U.S., Tokyo Electron and Canon from Japan, and ASML from the Netherlands. Equipment companies are the 'weapons' the Western bloc can use against China by imposing export bans.

However, no matter how important equipment is, it cannot surpass the importance of people. Machines are made by people, and people complete the final semiconductor products. The reason opinions arise that it is difficult to completely restrict China's semiconductor rise unless engineer movement and R&D progress are blocked is because of this.

Liang Mengsong, SMIC's CEO, is an example. The U.S. regulated its own companies' investments in China but did not restrict Taiwanese working in China's semiconductor sector. As seen in Huang Qainqain's case, China’s self-development of talent cannot be stopped.

China relies on massive investment and a talent pool. If Huawei uses its huge annual R&D budget in semiconductors to launch a counterattack, it may take some time, but defending against the U.S. will not be easy. Industry observers expect that if the Netherlands blocks ASML's lithography equipment exports to China, China will attempt to develop its own.

Jensen Huang, CEO of NVIDIA, has warned that semiconductor export restrictions to China might encourage domestic development and raise the level of China's semiconductor industry. Huang expressed concern that U.S. companies might suffer losses by losing China as a sales market due to export restrictions. This is similar to how Japan's semiconductor material export restrictions to South Korea stimulated the South Korean government and companies to foster their semiconductor industry.

The fact that many Chinese-origin professionals are positioned in the semiconductor field cannot be ignored. In the past, TSMC benefited from Chinese-origin semiconductor professionals educated in the U.S., but in the future, China may absorb Chinese-origin talent like a litmus test.

iPhone 15 Outshined Despite Overwhelming Performance

The benchmark results between Apple's 3nm 'A17 Pro' chip (Apple renamed the A17 Bionic to Pro) in the iPhone 15 Pro and Huawei's 7nm 'Kirin 9000S' chip in the Mate60 Pro show an overwhelming victory for Apple.

Benchmark Results of Huawei Mate60 Pro

Apple iPhone XS Benchmark Results

Benchmark Results of iPhone 15 Pro

The performance of the 7nm chip developed by China is comparable to the Apple A12 Bionic chip, the first 7nm process AP produced in 2018. Despite the significant performance gap, the conflicts and controversies surrounding the release of the iPhone 15 and Mate60 Pro suggest considerable aftershocks in the semiconductor industry. As seen in this case, the U.S. leads in APs, but Huawei surpassed Apple at least in the 5G chip field.

After reports from the U.S. that the Chinese government plans to restrict iPhone use by civil servants and state-owned enterprise employees, the White House reacted strongly with calls for additional regulations. In response, the Chinese Ministry of Foreign Affairs officially stated that they had never heard of any iPhone usage restrictions. China claims the U.S. media reports on China's iPhone restrictions are fake news. It is unclear whose statement is accurate, but it is undeniable that the U.S. is losing the strategic game against China in this non-technical battle.

Apple Shockwave will cover the performance of the A17 Pro chip, future strategies, and the effects of 3nm semiconductors after the official release of the iPhone 15.