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Apple Faces Growing Challenges in China as Huawei Aims for a Comeback

Apple is encountering a series of challenges in China, including escalating geopolitical tensions and a slower-than-expected Chinese economy. However, analysts believe that Apple’s most significant challenge could come from Huawei, which is poised for a resurgence despite ongoing US sanctions.

Huawei has claimed a significant semiconductor breakthrough, even while facing US sanctions. The latest chips are produced by SMIC, China’s largest semiconductor manufacturer, a development that has raised concerns within the US government. Questions have been raised about the chip production process, given Huawei’s limited access to the necessary technology.

The extent of efficiency and scalability of this new chip manufacturing process remains uncertain. Pranai Kotas Thane, Deputy Director of the Taxila Institute, pointed out that if the chip production volume is limited, the process could be inefficient and costly. The exact number of 7nm SMIC chips available for Huawei is unknown, but there may be a limited supply.

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