Huawei Plans 1.4nm Chips by 2031 Using Novel LogicFolding, Bypassing EUV
ASML•Huawei claims its new LogicFolding architecture will enable production of 1.4nm chips by 2031 without ASML’s EUV machines, closing a five-year gap with TSMC’s planned 2028 output. SMIC shares jumped 18% and Hua Hong hit its daily limit after the announcement.
1. Huawei’s LogicFolding Innovation
Huawei’s semiconductor chief unveiled LogicFolding, a new chip architecture designed to boost transistor counts and data transmission speeds without using extreme ultraviolet lithography machines. The company aims to start large-scale production of 1.4nm chips by 2031, narrowing a current five-year technology gap with Taiwan Semiconductor Manufacturing Co., which targets mass output in 2028.
2. Market Reaction in China
Shares of China’s leading foundries rallied strongly after the announcement, with SMIC rising more than 18% and Hua Hong Semiconductor hitting its daily 20% limit. The Star 50 Index reached a record high as investors priced in the potential for accelerated domestic chipmaking capabilities.
3. Implications for ASML
If Huawei successfully manufactures cutting-edge chips without ASML’s EUV equipment, it could challenge the global assumption that such machines are indispensable for sub-5nm production. This shift may weigh on future orders for ASML’s flagship lithography systems and reshape supplier dynamics in the semiconductor equipment industry.
