I recently revisited this issue, and the conclusion is quite straightforward: It’s not that Huawei “cannot use TSMC”; rather, it is that U.S. regulations have severely constrained its compliant pathways. Xiaomi is able to access TSMC simply because it was never included in the same export control list as Huawei.
“As I recall, Xiaomi was able to break through initially thanks to its solid product quality and distinctive cost-performance advantage – in those early years, other brands would often price similar models at four or five thousand yuan, while Xiaomi could keep the price under two thousand yuan. Many people were switching phones at that time, and they chose Xiaomi because of the ‘low-cost entry into high configuration.’”
However, in the past two or three generations of flagship phones, the upgrade momentum has noticeably weakened. Every time I look at new product parameters and features, it’s hard to have a “wow” moment – most are minor adjustments: such as camera algorithm optimization, slight battery life improvements, or simply changing the color scheme. There’s a lack of core changes that leave a lasting impression.