The U.S. trade sanctions struck Huawei in 2020, putting the company in a precarious position when it was forecasted to overtake Samsung as the biggest smartphone brand half a decade ago. The export controls forced the Chinese firm into a corner, but the company continued to overcome overwhelming odds. Sadly, choosing this path meant that Huawei had to increase its expenditure in R&D to secure its future. Unfortunately, its net earnings have taken a toll, and due to this decision, it pocketed a smaller profit in the first half.
A massive 32 percent drop in profit had to be endured by Huawei as it aims to gain self-sufficiency from external companies
In terms of revenue, Huawei generated an impressive 427 billion yuan in H1 2025, or approximately $59.84 billion, making it the highest it has garnered since 2020. Critics who counted out the company must be evaluating their previous claims, but Huawei’s progress has come at a cost. Reuters reports that the former technology titan reported a 32 percent drop in profit for the first half of 2025 due to increased R&D spending as it finds a way past the U.S. sanctions.
Huawei pocketed 37 billion yuan, or $5.17 billion, as it bumped up its expenditure from the January to June period to 96.9 billion yuan, or $13.58 billion, up from 88.9 billion yuan, or $12.46 billion, it invested in H1 2024. The company’s resurgence materialized when it announced its flagship smartphone series, the Mate 60, which came equipped with the Kirin 9000S that was mass produced using SMIC’s 7nm process. The unveiling sparked countless debates across the technology industry, with the U.S. government arguing that Huawei violated trade sanctions to develop its in-house silicon.
Currently, without access to cutting-edge EUV machinery, Huawei cannot research and develop ‘state of the art’ chipsets for a variety of product ranges, as China’s largest semiconductor manufacturer, SMIC, is currently limited to the 7nm node. Fortunately, the company’s partner SiCarrier is currently busy developing custom EUV equipment that would allow not just Huawei, but a boatload of companies to reduce dependency on the likes of ASML and others, carving their own path while boosting their technological prowess against the U.S.
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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