Challenges ahead for HISILICON chips

HISILICON chips face many challenges in the future, as follows:

1. External technology blockade: The technology blockade imposed on Huawei by the United States and other western countries still exists, restricting the export of key technologies, equipment and software, resulting in HISILICON chips facing many difficulties in design and manufacturing, such as the inability to obtain updates of advanced EDA tools and the restriction of the high-end chip manufacturing process, which has impacted the progress of the chip's research and development and the improvement of its performance.
2. Chip manufacturing bottleneck: At present, the global high-end chip manufacturing is mainly concentrated in the hands of a few companies such as TSMC and Samsung. Although HISILICON has excellent chip design capabilities, it still relies on external foundries in the chip manufacturing process, and the uncertainty of the external environment makes the supply of chip manufacturing risky, and there is still a gap between domestic foundries such as Semiconductor Manufacturing International Corporation (SMIC) and the international advanced level in terms of technology and capacity scale, which makes it difficult to fully satisfy the needs of HISILICON chips in the short term. In the short term, it is difficult to fully meet the manufacturing demand of HISILICON chips.
3. Intense market competition: The global chip market is highly competitive, and HISILICON not only has to face competition from international chip giants such as Qualcomm, Intel, and Nvidia, but also has to face challenges from domestic counterparts such as MediaTek, and competitors are constantly launching high-performance and low-power products in the fields of cell phone chips and server chips, so HISILICON needs to continuously improve its competitiveness in order to maintain its market share and leading position.
4. High pressure on R&D investment: The rapid development of chip technology requires companies to continuously invest a large amount of money in R&D to maintain a leading position in technology. HISILICON needs to continuously increase R&D investment in order to break through the technological blockade and improve the performance of its chips, which puts higher requirements on the company's financial strength and profitability, and also faces the risk of transforming the results of R&D into market applications.
5. Intellectual property barriers: The intellectual property barriers in the chip field are high, and international chip giants own a large number of core patents. HISILICON needs to break through these patent barriers to avoid intellectual property disputes during the process of technology R&D and product innovation, and at the same time, it also needs to strengthen its own intellectual property rights protection in order to safeguard the legitimate rights and interests of the enterprise and its market competitiveness.
6. Talent Shortage and Loss Risk: The semiconductor chip industry is a technology-intensive industry with a strong demand for specialized talents, and there is a relative shortage of domestic chip talents. HISILICON needs to compete with other enterprises to attract and retain excellent talents, and at the same time, it needs to strengthen its talent cultivation and team building in order to satisfy the needs of the rapid development of the enterprise, and to prevent talent shortage and loss from adversely affecting the development of the enterprise.