Huawei's recent media roundtable in Shenzhen underscored the company's determination to secure a competitive edge through continuous innovation, even as it navigates significant geopolitical and supply chain challenges. Richard Yu, Executive Director and Chairman of the Investment Review Board, outlined a strategy that hinges on heavy research and development spending, the maturation of the HarmonyOS ecosystem, and breakthroughs in semiconductor design.
Between 2007 and 2025, Huawei invested more than CNY1.8 trillion in R&D, with its annual R&D intensity rising from roughly 10% of revenue to over 20%. This sustained commitment has yielded proprietary technologies across chips, operating systems, and AI. The newly launched Mate 90 series, powered by the Kirin 9050 Pro chip, exemplifies this progress. The chip integrates Huawei-designed components including the Balong modem, image signal processor, mobile security processor, Lingxi CPU, Maleoon GPU, and a Da Vinci architecture NPU. Overall device performance is 31% higher than the previous generation, and the phone can run a 30-billion-parameter on-device AI model.
A key technological breakthrough is the LogicFolding technology under the Tau Scaling Law, which vertically stacks logic layers and restructures circuit layouts to shorten critical paths and reduce latency. First unveiled by He Tingbo in May, this approach allows Huawei to mitigate limited access to advanced semiconductor processes. Yu confirmed that more phones will adopt LogicFolding chips in the future, signaling a long-term shift in Huawei's chip design philosophy.
Beyond hardware, Huawei's HarmonyOS ecosystem has reached critical mass. More than 90 million devices now run HarmonyOS 6 and 7, a figure expected to surpass 100 million by year-end. The platform boasts over 450,000 apps and services, 11 million registered developers, and 23,000 app innovation partners. Yu indicated that Huawei is considering gradually bringing HarmonyOS to the global market, a move that would position it as a third major mobile operating system alongside iOS and Android. For a deeper look at Huawei's innovation strategy, the full Q&A session is available at https://www.apmultimedianewsroom.com/multimedia-newsroom/continuous-innovation-securing-our-competitive-edge-through-technological-breakthroughs.
Huawei's efforts to localize its supply chain have also borne fruit. Since 2019, when US restrictions intensified, the company has developed its own operating system and basic software tools, and in 2023 resumed domestic manufacturing of smartphone chips. Yu stated that Huawei has "basically gotten rid of the dependence on US technologies." This vertical integration reduces vulnerability to external shocks but also highlights the constraints Huawei faces, particularly in advanced semiconductor capacity. Yu acknowledged that domestic production capacity for advanced chips remains tight, affecting both AI Ascend chips and smartphone processors. Rising memory prices have further pressured sales volumes, though Yu noted that capacity is generally sufficient for current shipment needs.
Globally, Huawei's smartphone market share has shrunk to several million units annually outside China, a fraction of its former dominance. However, Yu revealed a step-by-step return to overseas markets. In wearables, Huawei leads both in China and globally, and its TWS earphones are growing fast. HarmonyOS-based tablets and CPE routers for rural connectivity are also gaining traction internationally. These products could serve as beachheads for a broader comeback.
The implications are significant. Huawei's ability to design advanced chips without cutting-edge lithography, coupled with a self-sufficient operating system and a vast domestic supply chain, demonstrates a model of technological autonomy that could inspire other firms facing similar restrictions. Moreover, HarmonyOS's potential global expansion would intensify competition in the mobile OS duopoly, potentially reshaping app development and device ecosystems. As Huawei continues to pour resources into R&D, its trajectory will be closely watched by industry players, policymakers, and consumers alike, as reported by Media OutReach Newswire.
