Huawei should be able to procure 5G chips domestically using its own advances in semiconductor design tools along with chipmaking from SMIC, three third-party technology research firms covering China's smartphone sector told Reuters.

The firms, citing industry sources including Huawei suppliers, spoke on condition of anonymity because of confidentiality agreements with clients.

A return to the 5G phone market would mark a victory for the company that for almost three years said it was in "survival" mode. Huawei's consumer business revenue peaked at $67 billion in 2020, before plummeting by almost 50 per cent a year later.

Huawei was a contender to be the world's biggest handset maker until rounds of US restrictions beginning in 2019 cut its access to chipmaking tools essential for producing its most advanced models.