Huawei Unveils Mate XT 2 with New Kirin Chip and HarmonyOS 7

According to the South China Morning Post, Huawei Technologies recently introduced its initial smartphone, powered by a next generation mobile processor based on the company's proprietary Tau Scaling Law. This aims to improve chip performance and reduce reliance on advanced foreign semiconductor equipment. The device's unveiling precedes models from Apple and Xiaomi.

Credit: HUAWEI

Richard Yu Chengdong, Huawei's consumer business group chairman, presented the Kirin 9050 Pro at a Guangzhou event, calling it "most powerful Kirin chip ever." This processor operates on Huawei's Tau Scaling Law, seeking to enhance semiconductor performance by reducing signal delays. LogicFolding technology shortens signal paths, packing more transistors into less space. The chip powers the Mate XT 2, a trifold smartphone launched at US$2,980. Mr Yu stated it improved performance by 42 per cent over the previous Mate XTs model, released the preceding year.

And this launch occurs amidst intensifying competition in the foldable phone sector. Chinese rival Xiaomi announced a new foldable model the same day, with Apple's first ever foldable device expected days later. Global foldable phone shipments grew 18 per cent in the preceding year, according to Counterpoint Research, which projects growth to accelerate to 24 per cent for the current year and 37 per cent for 2027. The Mate XT 2 also marks the initial deployment of HarmonyOS 7, Huawei's self developed operating system. This software, with AI coding agents, was first available to devs as a beta version months prior, rolling out to existing Huawei phones the same day.

Huawei's hardware and software introductions reflect its innovation drive despite strict export controls restricting access to American chips, semiconductor equipment, and Google's Android services. The Kirin chip, previously "Kirin 2026" in an earlier research paper, remains central to Huawei's strategy. Huawei stated its Tau Scaling Law could achieve 1.4 nanometre transistor densities by 2031, without advanced extreme ultraviolet lithography machines subject to United States led export restrictions.

A recent paper reported the new chip operated cooler than its predecessor, containing 55 per cent more transistors per square millimetre and cutting power usage by up to 66 per cent for certain tasks. The ChinaXiv paper has not undergone peer review. He Tingbo, chairwoman of Huawei's Scientist Committee and president of its semiconductor business department, presented the Tau Scaling Law months ago. She stated the firm used this principle to design and mass produce 381 chips over six years.

And substantial investment in chip development, alongside rising component expenses, has impacted Huawei's financial returns. Research and development expenditure increased 25 per cent to US$18 billion over the initial six months of the current year. Net profit, however, decreased 36 per cent to US$3.55 billion; revenue still increased 9.6 per cent to 467.8 billion yuan, partly from strong smartphone recovery and accelerating demand for Huawei's AI processors. According to IDC, Huawei led the Chinese smartphone market during the second three month period, holding a 22.6 per cent share, driven by a 19.4 per cent rise in shipments.

Beyond smartphones, Huawei benefits from increased adoption of its Ascend AI chips, a domestic alternative to Nvidia products. Several AI companies, including Big Tech firms DeepSeek and Z.ai (Zhipu), use Huawei chips for their AI models. TrendForce data released earlier in the current year suggests Huawei and other domestic chip suppliers expect to secure nearly 80 per cent of China's AI server market for the current year, further pressuring global rivals, including Nvidia.

• Huawei introduced the Mate XT 2, a trifold smartphone, featuring its new Kirin 9050 Pro chip and HarmonyOS 7.

• The Kirin 9050 Pro, based on Tau Scaling Law, reportedly improves performance by 42 per cent and enables higher transistor density without advanced foreign lithography.

• Huawei faces intensifying competition in foldable phones from Xiaomi and Apple, yet grew smartphone market share in China.

• Despite export controls, Huawei continues innovation in chips and operating systems, with Ascend AI chips gaining traction as a domestic Nvidia alternative.

• The company experienced increased revenue despite significant R&D spending and decreased net profit, indicating continued investment in core technologies.

Source: SCMP