KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Key Takeaway: Huawei’s ambitions to produce advanced AI and smartphone chips have hit a wall due to US sanctions, keeping the company stuck with 7nm chip technology until at least 2026.
The Challenge:
- Huawei’s next two Ascend processors, designed to compete with Nvidia’s AI accelerators, will rely on 7nm architecture, mainstream since 2018.
- US restrictions block access to extreme ultraviolet (EUV) lithography machines from ASML, essential for cutting-edge chip production.
Implications:
- Lagging Behind:By 2025, Taiwan Semiconductor Manufacturing Co. (TSMC) will be mass-producing 2nm chips, leaving Huawei three generations behind.
- Production Struggles:Huawei’s partner, Semiconductor Manufacturing International Corp. (SMIC), faces poor yield and reliability issues even for 7nm chips.
Broader Impact on China:
- National AI Goals:Huawei’s setbacks highlight the difficulty China faces in achieving self-sufficiency in semiconductors, even with heavy state backing and R&D investments.
- Inferior Domestic Equipment:Beijing’s push for locally made chipmaking tools has been hindered by subpar performance, forcing reliance on older deep ultraviolet (DUV) lithography techniques, which are costly and error-prone.
Current Workarounds:
- Multi-Patterning Technique:Huawei and partners attempt to push the limits of DUV machines through quadruple patterning. However, the process increases defects, costs, and variability, making it unsuitable for high-volume 5nm production.
- Domestic Substitutes:Despite Beijing’s push for alternatives to Nvidia’s AI chips, Huawei struggles to meet demand for its own Kirin smartphone processors and Ascend AI chips.
Market Response:
- Huawei's silence on processor details for its upcoming Mate 70 smartphone, launching Nov. 26, signals uncertainty. Instead, Huawei focuses on its Harmony OS to offset hardware delays.
- Biden Administration Restrictions:China is further constrained by bans on advanced equipment from Applied Materials, Lam Research, and Nvidia’s most powerful AI chips.
Outlook:
“China faces significant hurdles to achieve profitable 5nm production and scale up its domestic chip ecosystem,” said Ying-Wu Liu, analyst at Yole Group. Despite incremental progress, self-sufficiency in advanced semiconductors remains a distant goal.
US sanctions have successfully slowed Huawei’s and China’s technological progress, leaving them reliant on outdated technologies as global competitors continue to advance.
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