Can Huawei’s Closed Model Propel China’s Chip Industry? An Expert’s View

Introduction

In today’s technology landscape, the development of the chip industry is a key indicator of national competitiveness. In an interview, Academician Sun Ninghui examined the gap between China and foreign chip industries and outlined future development directions, highlighting Huawei’s technology roadmap and its impact on China’s semiconductor sector.

Huawei’s Closed Development Model

Sun points out that Huawei adopts a closed, monopolistic development model. The core of this model is to concentrate technology and profits within a single enterprise, achieving end‑to‑end control. Huawei’s tactical system focuses resources on large‑scale projects, maximizing both technological advancement and profit.

The downside is that if the upstream or downstream supply chain is disrupted, the company faces immense pressure.

During the U.S. sanctions on Huawei, the fragility of this closed model became evident. Huawei’s consumer‑business suffered severe setbacks, market share dropped sharply, and product reputation declined. Although the telecom business continued to fund the consumer segment, supply‑chain challenges remained severe.

Importance of an Open Industry‑Chain Model

Sun emphasizes that, besides the closed model, China must develop an open industry‑chain approach. This model’s core is single‑point breakthroughs and the integration of resources to strengthen weak links. High‑level CPU, GPU, and operating system designs are currently dominated by the United States; China must achieve breakthroughs through collaborative, whole‑industry development.

Huawei’s HarmonyOS serves as a typical example. Over more than a decade, Huawei built its own software ecosystem. Despite significant technical progress, software adaptation remains a huge challenge, requiring cooperation with numerous software vendors to develop native applications for HarmonyOS.

Huawei’s Future Development Direction

Huawei is currently the domestic company most likely to challenge the IDM (Integrated Device Manufacturer) model. Backed by its telecom business, Huawei can continuously fund HiSilicon’s semiconductor R&D. Its chip design capabilities have reached a level comparable to overseas nations, yet gaps remain in memory technology and manufacturing.

Once these gaps are closed, Huawei’s vertical development model will be fully formed, giving it the opportunity to challenge the technological monopolies of overseas giants.

Conclusion

Sun’s viewpoint is clear: relying solely on Huawei’s closed, monopolistic tactical system cannot match foreign enterprises. China needs both vertically integrated companies like Huawei and open‑chain enterprises to cooperate. By integrating the strengths of both models, China can build robust competitiveness in the fragmented technology era and secure future victories.