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Huawei utilized technology from two American providers to create its revolutionary chip, despite the sanctions imposed by Biden
The global tech industry was surprised when Huawei and SMIC, the Chinese smartphone manufacturer, debuted the Mate 60 Pro equipped with an advanced 7nm chip. The development of chips in China has been unstable for years due to sanctions enforced by the US.
Last year, Huawei and its collaborator, Semiconductor Manufacturing International Corp (SMIC), significantly relied on U.S. technology to develop a sophisticated chip in China, according to insiders with knowledge of the situation.
Per the information from undisclosed sources, Shanghai's SMIC employed tools from Applied Materials Inc. and Lam Research Corp., two companies in California, to create a state-of-the-art 7nm chip for Huawei in 2023. The informants chose to remain unnamed since the specifics are not available to the public.
The confidential data highlights China's continuous dependence on international parts and machinery for advanced technology products like semiconductors. Even though they have placed importance on technological independence, China is still reliant on foreign resources for some essential technologies. Beijing has backed Huawei's efforts to improve local chip design and manufacturing.
SMIC, Huawei, and Lam representatives chose not to comment on the issue. Similarly, Applied Materials and the Bureau of Industry and Security of the US Commerce Department, which oversees export controls, also withheld their comments.
Despite being seen as a major milestone in China's semiconductor industry, the chip made by SMIC last year for Huawei's Mate 60 Pro triggered a wave of nationalistic smartphone buying in the nation. Even though the chip doesn't meet international benchmarks, it signifies a level of progress that surpasses US expectations in hindering China's tech progress.
Nonetheless, the apparatus employed in its manufacturing still depended on overseas sources, incorporating tech from the Dutch producer ASML Holding, along with machines from Lam and Applied Materials.
Chinese chip equipment manufacturers are working hard to match up to their American competitors, however, their products are still not as advanced or extensive. Despite their attempts, China's premier lithography system creator, Shanghai Micro Electronics Equipment Group Co., still lags behind the industry's frontrunner, ASML.
SMIC secured the American equipment prior to the implementation of US sanctions in October 2022. After the embargo was enacted, American providers removed their personnel from China, and ASML barred its American workforce from dealing with Chinese clients.
The US has subsequently implemented additional limitations, banning the sale of advanced, US-based technology to SMIC and Huawei, both of which have been blacklisted due to supposed connections with the Chinese military.
The imposed trade restrictions led Huawei and SMIC to explore other options for establishing an in-house chip supply chain, which eventually resulted in the launch of the Mate 60 Pro.
In reaction, the United States began a probe into Huawei's processor, with Commerce Secretary Gina Raimondo promising strict measures for the sake of national security. Republican legislators have urged for a total ban on Huawei and SMIC's use of US technology.
Trade authorities are skeptical about SMIC's capacity to mass produce 7nm chips without the use of ASML's lithography systems, emphasizing the technical difficulties and potential restrictions on chip manufacturing quantity.
The United States is encouraging its allies to increase restrictions on China's access to semiconductors, even though some nations are hesitant due to potential trade consequences.
Huawei is surfacing as a possible competitor in China's chase for AI chip creation, presenting a threat to industry frontrunners such as NVIDIA, as per CEO Jensen Huang.
As China continues to advance technologically while under international watch, its dependence on overseas technology highlights the intricacies of global commerce and issues of national security.
(Incorporating information from various sources)
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