Bitcoin Mining Boosts Huawei’s Chip Development, Reducing China’s Reliance on Western Tech
A recent report from The Miner Mag suggests that bitcoin mining companies played a crucial role in boosting the development of Huawei’s chip technology. By purchasing wafers and providing a significant volume of orders, these mining companies helped improve the production of SMIC’s 7nm chips. This partnership between bitcoin miners and SMIC, a leading chip manufacturer, has had significant implications for China’s tech industry.
Huawei’s Chip Challenges and the Role of Bitcoin Miners
Due to its inclusion in the U.S. trade blacklist, Huawei faced difficulties in accessing advanced chip production. When its previous supplier, TSMC, cut ties, Huawei turned to SMIC. However, SMIC initially struggled to produce advanced 7nm chips. This is where bitcoin mining companies, such as Canaan, stepped in. By designing chips on SMIC’s first-generation 7nm N+1 process, these miners helped improve SMIC’s production capabilities.
The Impact of Bitcoin Miners on SMIC and Huawei
The growing orders from bitcoin miners played a crucial role in refining SMIC’s 7nm production capabilities. This, in turn, expedited the development of Huawei’s new Kirin chip using SMIC’s enhanced N+2 process. While the exact impact of bitcoin mining on this process is challenging to measure, it is clear that miners were early adopters and consistent customers for SMIC’s emerging 7nm production.
Hot Take: Decreasing China’s Dependence on Western Chip Technologies
By aiding SMIC in producing advanced chip technology for Huawei, bitcoin mining companies have contributed to reducing China’s reliance on Western chip technologies. This partnership highlights the potential of collaboration between different industries to drive technological advancements and increase national self-sufficiency.
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