Awesome, Huawei Uses Chips for Bitcoin Mining!

Huawei uses advanced chips that are usually used to mine bitcoin. (Photo; Doc. PeruConnection)

JAKARTA - An exclusive report released by The Miner Mag reveals that orders in the Bitcoin mining industry have been a strong driver behind the accelerated development of Huawei's latest smartphone chips.

The Kirin chip, which now complements the presence of the Huawei Mate 60 Pro, is produced by Semiconductor Manufacturing International Corp (SMIC) China using advanced 7nanometer N+2 processor technology. This processor technology is commonly used for Bitcoin mining. Bitcoin mining giant Canaan is one of those using it.

Since Huawei was blacklisted by the US in 2019, this technology company has had difficulty accessing advanced chip production, and has been cut off from the business environment of US technology companies.

Since then Huawei has faced major obstacles due to difficulties working with Google and Microsoft. Even so, Huawei is starting to recover from adversity by developing its own operating system, HongmengOS or commonly known as HarmonyOS.

On the other hand, Taiwan Semiconductor Manufacturing Co (TSMC), was forced to decide on cooperation with Huawei, SMIC was the best choice for this giant technology company. However, initially, SMIC had difficulty producing the 7nm chips required by Huawei.

According to reports, Bitcoin mining companies, such as Canaan, began designing their chips utilizing SMIC's first-generation (N+1) 7nm technology in late 2020. The large order from Canaan has reportedly given SMIC a significant boost, with N+ chip production throughput rates 1 SMIC exceeds 90%. Other Bitcoin mining companies, such as Innosilicon and Miner-VA, have also adopted SMIC's N+1 technology in their chip designs.

This research reflects increasing demand from the Bitcoin mining industry, which has been a loyal customer in the development of SMIC's 7nm chip technology. While the exact impact of Bitcoin mining is difficult to measure, findings uncovered by The Miner Mag suggest that Bitcoin miners are among the early customers who regularly order the emerging SMIC 7nm chip.

Orders received from the Bitcoin mining industry have played an important role in helping SMIC overcome various production constraints and improve their production efficiency. On the other hand, current conditions allow China's SMIC to produce advanced Huawei smartphone processors.

These findings also highlight the importance of SMIC's development of 7nm chip technology in reducing China's dependence on Western chip technology. Companies like Huawei that rely on domestic production of advanced chips can strengthen their position in the global technology company environment. So Huawei is no longer dependent on US technology companies.