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Huawei has innovatively created its chip utilizing technology from two American providers, notwithstanding the sanctions imposed by Biden's administration.
The world was taken by surprise when the Chinese smartphone manufacturer, Huawei, along with SMIC, introduced the Mate 60 Pro equipped with an advanced 7nm chip. Due to sanctions placed by the US, chip production in China has been unsteady for several years.
Sources close to the situation disclosed that Huawei and its ally, Semiconductor Manufacturing International Corp (SMIC), relied significantly on US technology to develop a sophisticated chip in China the previous year.
The sources reveal that SMIC, headquartered in Shanghai, used machinery provided by Applied Materials Inc. and Lam Research Corp., located in California, to produce an advanced 7nm chip for Huawei in 2023. These sources chose to remain anonymous since this information isn't publicly available.
The concealed data highlights China's continuous dependence on foreign parts and machinery for advanced tech items like semiconductors. Even though it has prioritized tech autarky, China still needs foreign resources for some key technologies. Beijing has backed Huawei's efforts to improve local chip design and manufacturing.
Officials from SMIC, Huawei, and Lam chose not to make any statements on the issue. Similarly, Applied Materials and the US Commerce Department's Bureau of Industry and Security, in charge of export controls, did not offer any remarks either.
Despite being celebrated as a notable milestone in China's semiconductor progression, the chip produced by SMIC for Huawei's Mate 60 Pro last year led to a rise in nationalistic smartphone buying within the nation. Even though the chip does not meet worldwide standards, it demonstrates an advancement surpassing what the US had intended to limit in China's technological growth.
Nonetheless, the apparatus utilized in its manufacturing still depended on overseas resources, incorporating technology from the Dutch firm ASML Holding, along with machines from Lam and Applied Materials.
Chinese chip equipment providers are diligently working to compete with American companies, however, their products still lack the same scope and complexity. Even with persistent attempts, Shanghai Micro Electronics Equipment Group Co., the leading lithography system creator in China, still lags behind the industry giant, ASML.
SMIC procured the US equipment prior to the implementation of the US sanctions in October 2022. Post the prohibition, American vendors pulled back their workforce from China and ASML barred their US workers from collaborating with Chinese clients.
The United States has subsequently enforced additional limitations, banning the sale of advanced, US-made technology to SMIC and Huawei, who are both under sanction due to supposed connections to the Chinese military.
Trade restrictions led Huawei and SMIC to explore other options for creating a local chip supply chain, eventually resulting in the launch of the Mate 60 Pro.
The US launched a probe into Huawei's processor in reaction, with Commerce Secretary Gina Raimondo promising strict measures for the sake of national security. Republican legislators have pushed for a total ban on Huawei and SMIC's use of US technology.
Trade authorities are skeptical about SMIC's capacity to manufacture 7nm chips on a large scale without the use of ASML's lithography systems. They emphasize the technological difficulties and possible restrictions on the quantity of chip production.
The US is encouraging its allies to increase limitations on China's access to semiconductors, even though it is facing opposition in some nations because of the potential impact on trade.
Huawei has emerged as a possible competitor in China's quest for AI chip creation, presenting a threat to industry frontrunners such as NVIDIA, as stated by CEO Jensen Huang.
While China is progressing technologically amid global examination, 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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