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Huawei developed an innovative chip with technology from two American providers, even with the sanctions put in place by Biden
The unveiling of the Mate 60 Pro by Huawei and SMIC, which featured a state-of-the-art 7nm chip, took the global community by surprise. Owing to the sanctions enforced by the US, chip production has faced instability in China for a considerable period.
Sources with knowledge of the situation disclosed that Huawei and its collaborator, Semiconductor Manufacturing International Corp (SMIC), relied significantly on American technology to develop a sophisticated chip in China the previous year.
The sources state that SMIC, a Shanghai-based company, used tools from Applied Materials Inc. and Lam Research Corp., both located in California, to create a state-of-the-art 7nm chip for Huawei in 2023. The sources asked for their identities to be hidden as this information is not public knowledge.
The hidden data highlights China's continuous dependency on international elements and tools for advanced technology goods like semiconductors. Even though China gives top priority to being tech-independent, it still needs foreign resources for some vital technologies. Beijing has backed Huawei in its efforts to improve local chip design and manufacturing.
Spokespersons from SMIC, Huawei, and Lam chose not to comment on the issue. Similarly, Applied Materials and the Bureau of Industry and Security from the US Commerce Department, in charge of export controls, opted not to offer any comments.
Despite being praised as a major milestone in China's semiconductor evolution, the chip produced by SMIC for Huawei's Mate 60 Pro last year led to an increase in nationalistic smartphone buying in the nation. Although this chip doesn't meet international standards, it signifies progress that surpasses the US's expectations in limiting China's tech growth.
Nonetheless, the apparatus utilized in its creation continued to depend on overseas resources, incorporating technology from the Dutch firm ASML Holding, and also machinery from Lam and Applied Materials.
Chinese chip equipment providers are working hard to match the level of their American competitors, but their products are still not as advanced or complete. Even with their attempts, China's premier lithography system developer, Shanghai Micro Electronics Equipment Group Co., still lags behind the industry's frontrunner, ASML.
Before the US imposed restrictions in October 2022, SMIC managed to obtain American equipment. After the ban was put in place, American providers pulled their workforce out of China, and ASML forbade its US employees from engaging with Chinese clients.
The US has implemented additional constraints, barring the sale of state-of-the-art, US-made technology to SMIC and Huawei. Both have been placed on a blacklist due to purported connections with the Chinese military.
The imposition of trade restrictions led Huawei and SMIC to explore other options for establishing a local chip supply chain, which ultimately resulted in the launch of the Mate 60 Pro.
As a reaction, the US started a probe into Huawei's processor, with Commerce Secretary Gina Raimondo promising strict measures for the sake of national security. Republican legislators have suggested entirely blocking Huawei and SMIC from accessing American technology.
Trade department authorities are skeptical about SMIC's capacity to manufacture 7nm chips on a large scale without the use of ASML's lithography systems. This underscores the technical difficulties and possible restrictions on the mass production of chips.
The United States is calling on its allies to increase limitations on China's ability to access semiconductors, even though some nations are hesitant because of potential trade consequences.
Huawei is emerging as a possible competitor in China's quest for AI chip development, creating a challenge for industry frontrunners such as NVIDIA, says CEO Jensen Huang.
As China progresses in technology amidst worldwide observation, its dependence on overseas technology emphasizes the intricacies of international commerce and issues of national safety.
(Incorporating information from various sources)
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