Huawei announced development of 1.4nm chip designs aiming parity with TSMC’s 2027 node by 2030 after US sanctions cut off advanced lithography access. Separately, Amazon’s AWS AI infrastructure grew 28% in Q1 with $75B in commitments to Anthropic and OpenAI, underpinning strong demand for Nvidia GPUs.
Huawei is pursuing a breakthrough in chip design, targeting a 1.4nm process node by 2030 as US restrictions bar access to cutting-edge manufacturing tools. The company currently operates at a 2nm scale and is exploring tighter interconnect spacing to circumvent Moore’s Law constraints and close the gap with TSMC’s next-generation 2027 offering.
Amazon’s AWS AI division delivered 28% year-over-year revenue growth in Q1 and secured $25B in Anthropic and $50B in OpenAI commitments. Backed by custom Trainium chips and record 13.1% operating margins, AWS is on track for $214B in revenue by 2027, driving escalating demand for Nvidia GPUs to power its AI infrastructure.
Long-term, Huawei’s push toward advanced nanometer processes introduces potential competition in high-end chip markets, though full parity remains years away. In the nearer term, robust AWS AI expansion and sizeable cloud commitments support Nvidia’s GPU sales trajectory, balancing innovation risks with continued revenue opportunities.
