Huawei's Mate 70 Smartphone Analysis

SHANGHAI (Reuters) – Huawei's new Mate 70 smartphone features a chip that reveals only an "incremental improvement" over its predecessor, according to consultancy TechInsights on Wednesday.

A teardown of the Mate 70 Pro+ indicated it houses a Kirin 9020 processor fabricated by Chinese chip foundry Semiconductor Manufacturing International Corporation (SMIC), similar to the Kirin 9010 processor in Huawei's groundbreaking Mate 60 Pro.

This finding contradicts rumors suggesting the device would have a more advanced 5nm chip. TechInsights noted: "The Kirin 9020 processor is not a dramatic redesign but rather an incremental improvement over its predecessor, the Kirin 9010." This implies HiSilicon's strategy is to refine existing designs while leveraging SMIC's semiconductor manufacturing capabilities.

The report hints that Huawei may struggle to achieve significant advances in chip manufacturing after last year's surprising launch of the Mate 60, which utilized an advanced chip despite U.S. sanctions.

Last year, TechInsights stated it believed SMIC had managed to produce 7nm chips by adjusting deep ultraviolet lithography machines purchased from Netherlands manufacturer ASML (AS:ASML). However, SMIC's lack of advanced lithography equipment limits improvements in chip performance and yields, as reported by Reuters. Since 2020, the U.S. has prohibited China from obtaining extreme ultraviolet lithography (EUV) technology from ASML, critical for producing the most sophisticated processors.

TechInsights' analysis of the Kirin 9020 revealed notable changes in its circuit floor plan, aimed at enhancing performance and efficiency while retaining compatibility with SMIC's 7nm process. Additionally, the die of the Kirin 9020 is 15% larger than the Kirin 9010.

A Huawei executive noted last week that demand for the Mate 70 is strong, and the company is striving to meet orders. However, analysts believe consumer excitement for this model has lessened compared to the Mate 60, predicting weaker sales for the new phone.