Huawei unveils LogicFolding chips to challenge Nvidia in China

Huawei’s semiconductor unit announced a new chip design method called LogicFolding that it plans to use in Kirin smartphone processors shipping this fall. The approach stacks logic layers to improve power efficiency and density without relying on banned extreme ultraviolet lithography equipment. The company also described a broader “Tau scaling” framework that it says has already guided production of 381 chips over six years and could reach performance levels comparable to 1.4-nanometer processes by 2031.

Nvidia chief executive Jensen Huang stated last week that his company has conceded the Chinese market for advanced AI chips to Huawei because of U.S. export controls. Huawei’s Mate 60 phone, introduced in 2023 with a domestically produced 5G chip, already helped the firm regain smartphone share from Apple in China. Industry analysts note that scaling the same techniques from handsets to data-center GPUs remains unproven and faces thermal and yield constraints.

Paul Triolo of DGA Group said a folded design can increase effective density but does not resolve all manufacturing and power issues associated with true advanced nodes. Neil Shah of Counterpoint Research added that the approach introduces packaging complexities that could limit volume production. TSMC has begun volume output of 2-nanometer chips, providing a current benchmark for global leaders.

Huawei semiconductor president Tingbo He presented the findings at an IEEE conference in Shanghai and acknowledged that the work is at the start of a decade-long development path. The announcement occurs against continued U.S. restrictions that block Chinese firms from the most advanced chipmaking tools while Beijing promotes domestic alternatives.