In a significant year for Huawei Technologies Co., the company’s revenue soared by 9% in 2023, nearing a $100 billion milestone, following a surprising breakthrough in chip technology that challenged Apple Inc. (NASDAQ:AAPL) and U.S. sanctions.

What Happened: According to a Bloomberg report, Huawei’s revenue soared to over 700 billion yuan ($98.7 billion), driven by a thriving smartphone sector and robust 5G equipment sales. This represents the highest growth rate in recent years.

Quarterly revenue increased by 27%, hitting 243.4 billion yuan, marking a significant upturn from the marginal rise in the third quarter.

The Shenzhen-based conglomerate made headlines in 2023 by launching a smartphone equipped with a cutting-edge 7-nanometer Kirin processor manufactured in China. This revelation sparked discussion in Washington about the effectiveness of U.S. restrictions aimed at crippling China’s tech industry.

Despite being sidelined by top smartphone manufacturers after the U.S. severed it from overseas suppliers in 2019, Huawei is rebounding. The company has become a symbol of China’s determination to counteract the restrictions imposed by its geopolitical rival.

The company’s Mate 60 Pro, housing the 7nm Kirin chip, has been snatching market share from Apple's iPhone 15 since its August debut. Huawei has transformed into a significant player in the semiconductor sector, a key area of focus for the Biden administration.

Why It Matters: Nvidia’s CEO acknowledged Huawei as a significant competitor in the AI chip market. Huawei’s ascent as a top chip technology proponent in China, especially with its domestically-produced smartphone processor, has left the industry in awe.

Last month, Baidu Inc. ditched its long-time supplier, NVIDIA Corp (NASDAQ:NVDA), and opted for Huawei’s AI chips. The move was reportedly in response to increasing U.S. restrictions on tech exports to China.

Despite the challenges posed by stringent U.S. export controls, Nvidia plans to launch a less potent gaming chip variant in China amid increasing scrutiny from the Biden administration.

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