Global Power Plays

Ren Zhengfei backs Huawei’s Tau Scaling Law as a way around U.S. chip limits

Huawei’s founder says the Tau Scaling Law is a survival move. The plan aims to advance chips without EUV lithography amid U.S. sanctions.

Why this matters: Unlike global companies with other technological routes available, Huawei’s embrace of the new architecture was grounded in raw survival rather than an ambition to challenge industry norms, the 81-year-old entrepreneur added.

What happened

Huawei founder Ren Zhengfei publicly backed a new chip plan. He called the Tau Scaling Law the company’s path out of a tech squeeze.

His remarks appeared on Huawei’s internal Xinsheng Community and were reported by state-linked outlets. This is his first clear, public push for the idea since it was introduced in May.

Who wins here

Huawei and its chip arm, HiSilicon, gain the most. Ren’s backing gives the program top-level cover and money flow inside the company.

Employees who work on the design approach also benefit. Other Chinese suppliers could get new business if the plan reduces Huawei’s dependence on foreign tooling.

How the play works

is mostly technical and political. Technically, Tau Scaling Law tries to get better chips without EUV lithography — the fancy machines the U.S. has limited access to. Politically, Ren’s endorsement signals the firm will pour resources into this path.

That shifts Huawei from buying black-box tools to a long internal run of design and manufacturing tricks. The company aims to stitch together local suppliers and new chip layouts to keep selling devices under sanctions.

Why it matters

This is about survival, not novelty. If it works, Huawei could keep making competitive chips even with export controls in place. That strengthens China’s tech independence over time.

For regular people, the trade-off is slower progress on cutting-edge chips. Products may cost more or lag the global state of the art while firms adapt. It also tightens the link between big tech firms and national strategy.

What to watch next

Watch for technical papers, patents, and new chip samples from HiSilicon. Those show whether Tau Scaling Law moves from idea to working silicon.

Also watch supplier deals and government incentives. Big new contracts or subsidies mean Huawei is scaling the plan, not just talking about it.

LensGlobal Power Plays
TypeReporting
PublishedJuly 24, 2026
Read time3 min read
SourceSouth China Morning Post – China
Where the facts come from

The facts in this story were first reported by South China Morning Post – China. What you're reading here is our take on what it means for power and for you.

Read the original at South China Morning Post – China
Related topics

More stories on these topics

news analysisglobalmedia
Subscribe for moreExplore this lensBrowse all issues