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Huawei developed its revolutionary chip utilizing technology from two American providers, even with Biden's sanctions in place
Huawei and SMIC took the world by surprise when the Chinese smartphone firm released the Mate 60 Pro featuring a state-of-the-art 7nm chip. Due to sanctions imposed by the US, chip creation has been unstable in China for several years.
Sources knowledgeable about the situation disclosed that Huawei and its associate, Semiconductor Manufacturing International Corp (SMIC), extensively utilized American technology to develop a sophisticated chip in China the previous year.
As per the information obtained from certain undisclosed sources, Shanghai-based SMIC used technology from Applied Materials Inc. and Lam Research Corp., both located in California, to produce an advanced 7nm chip for Huawei in 2023. The sources chose to remain anonymous since the specifics are not open to the public.
The confidential data highlights China's continual dependence on international parts and machinery for advanced technology items like semiconductors. Even though China has emphasized on becoming technologically independent, it still needs foreign resources for some key technologies. Beijing has backed Huawei's efforts to improve local chip design and production.
Spokespeople for SMIC, Huawei, and Lam chose not to provide any statements regarding the issue. Both Applied Materials and the Bureau of Industry and Security from the US Commerce Department, which oversees export controls, also opted not to comment.
China's semiconductor development celebrated a major milestone last year with SMIC's production of the chip that powered Huawei's Mate 60 Pro. This sparked a wave of nationalistic smartphone buying in China. Even though the chip doesn't meet international standards, it still signifies an advancement in China's technology – an advancement the US had hoped to inhibit.
Nonetheless, the apparatus employed in its manufacturing still depended on overseas resources, including tech from Dutch producer ASML Holding, along with machines from Lam and Applied Materials.
Chinese chip equipment manufacturers have been making efforts to compete with their American peers, but their products are still less extensive and advanced. Despite their attempts, China's leading lithography system developer, Shanghai Micro Electronics Equipment Group Co., is still not on par with the industry front-runner ASML.
SMIC bought the American equipment prior to the US implementing limitations in October 2022. After the prohibition, American vendors pulled their personnel out of China, while ASML barred its American workers from collaborating with Chinese clients.
The US has subsequently implemented additional limitations, banning the sale of advanced US-based technology to SMIC and Huawei. Both have been blacklisted due to purported connections with the Chinese military.
The implementation of trade restrictions led Huawei and SMIC to explore other options for establishing a local chip supply chain, ultimately resulting in the launch of the Mate 60 Pro.
The US launched a probe into Huawei's processor as a reaction, with the promise from Commerce Secretary Gina Raimondo for strict measures to protect national security. Republican legislators have suggested completely blocking Huawei and SMIC from utilizing US technology.
Trade authorities question SMIC's capacity to manufacture 7nm chips on a large scale without the use of ASML's lithography systems, emphasizing the technical hurdles and possible constraints on chip production quantity.
The US is encouraging its allies to impose stricter limitations on China's access to semiconductors, even though some nations are hesitant due to potential trade complications.
Huawei is seen as a possible competitor in China's quest for AI chip advancement, presenting a threat to market leaders such as NVIDIA, says CEO Jensen Huang.
As China progresses in technology while being closely watched by the world, its dependence on overseas technology highlights the intricate nature of global commerce and issues of national security.
(Incorporating information from various sources)
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