Huawei's new chip technology could disrupt smartphone industry

Huawei is testing a new technology called laser-induced discharge plasma (LDP) that could serve as a substitute for extreme ultraviolet (EUV) lithography machines. This development may allow Huawei to produce advanced chips, potentially changing its position in the smartphone market. Previously, Huawei was limited by U.S. sanctions, which restricted access to EUV machines from ASML. This kept Huawei's chips two to three generations behind competitors like Apple and Qualcomm. However, recent advancements have enabled Huawei to support 5G in its Mate 60 series smartphones. If successful, Huawei's LDP technology could reduce U.S. control over the company and help it compete more effectively against major brands like Apple and Samsung. This follows a period of significant challenges for Huawei, including a drop in sales and the loss of its Honor sub-brand.