34 Trillion Won Invested in R&D
"Without Theory, We Cannot Catch Up with the United States"
Ren Zhengfei, founder and CEO of Huawei, China's largest telecommunications equipment company, stated that the company's artificial intelligence (AI) chip 'Ascend' is a generation behind the United States in terms of performance, and that the U.S. is exaggerating Huawei's achievements.
On June 10, in an interview with the People's Daily, the official newspaper of the Chinese Communist Party, Ren responded to a question regarding U.S. export controls on the Ascend chip.
Ren said, "There are many companies in China manufacturing semiconductors, and a significant number of them are doing well. Huawei is one of them." However, he added, "The United States is exaggerating Huawei's achievements. Huawei is not yet at such a remarkable level." He continued, "In terms of single chips, we are still a generation behind the United States."
Recently, the United States has been strongly wary of China's advanced semiconductor capabilities. On this day, the U.S. and China are entering the second day of high-level trade talks in London, United Kingdom. According to foreign media reports citing senior White House officials, one of the main topics of these negotiations is restrictions on semiconductor exports to China.
Previously, on May 13, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) issued a statement declaring that using Huawei's Ascend chips anywhere in the world would violate U.S. export control measures. This effectively imposed a ban on Huawei chips in all countries. In addition, last month, Jensen Huang, CEO of Nvidia, warned that as semiconductor exports to China are restricted, the capabilities of Chinese competitors are rapidly increasing and could fill the gap left by Nvidia. Ren's remarks on this day are seen as an acknowledgment of Huawei's current technological limitations and as a response to the U.S. ban on Huawei chips.
Ren said, "We are using mathematics to address physics, using non-Moore approaches to supplement Moore's Law, and using cluster computing to compensate for single-chip limitations. Through these methods, we can reach a practical level."
When asked whether there are difficulties in semiconductor development, Ren replied, "When has there ever been a time without difficulties?" He added, "China has opportunities in the field of mid- to low-end chips. Dozens or even hundreds of chip companies in China are working hard. There are even greater opportunities, especially in compound semiconductors."
In the interview, Ren emphasized the importance of basic research. He said, "We invest 180 billion yuan (approximately 34.2108 trillion won) in research and development (R&D) each year, of which about 60 billion yuan is allocated to basic theoretical research and is not subject to evaluation. The remaining 120 billion yuan is evaluated and invested in product R&D." He continued, "Without theory, there can be no breakthroughs, and we cannot catch up with the United States."
After U.S. sanctions in 2019 blocked access to advanced semiconductors, Huawei began developing its own semiconductor capabilities. Foreign media reported that this is the first time Ren has made public comments regarding Huawei's efforts in advanced chip manufacturing.
Regarding the future of artificial intelligence (AI), Ren said, "It could be the last technological revolution for human society." He continued, "The development of AI will take place over decades or even centuries, so there is no need to worry. China also possesses many strengths," expressing confidence.
He also emphasized that there is no need to worry about chips either. He said, "Through methods such as integration and clustering, we can match the most advanced levels in terms of computational results. On the software side, in the future, hundreds of open-source software solutions will meet the needs of society as a whole."
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