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Huawei created an innovative chip with technology from two American providers, despite sanctions imposed by the Biden administration.
The world was surprised when Huawei and SMIC, the Chinese smartphone manufacturer, introduced the Mate 60 Pro with a state-of-the-art 7nm chip. The development of chips in China has been uncertain for years due to sanctions from the United States.
Sources knowledgeable on the subject have disclosed that Huawei along with its collaborator, Semiconductor Manufacturing International Corp (SMIC), relied significantly on US technology to develop a sophisticated chip in China the previous year.
As per the information provided by unnamed sources, Shanghai's SMIC used tools from Applied Materials Inc. and Lam Research Corp., both headquartered in California, to produce an advanced 7nm chip for Huawei in 2023. These sources chose to remain anonymous since the specifics are not officially disclosed.
The concealed data emphasizes China's continued dependence on imported parts and machinery for advanced tech items like semiconductors. Even though China has made technological independence a priority, it still relies on foreign resources for some critical technologies. Beijing has backed Huawei in its efforts to improve local chip design and manufacturing.
Spokespersons for SMIC, Huawei, and Lam chose not to make a statement on the issue. Similarly, Applied Materials along with the Bureau of Industry and Security from the US Commerce Department, which oversees export regulations, also opted not to comment.
Even though it didn't meet international norms, the SMIC-manufactured chip that was utilized in Huawei's Mate 60 Pro last year was celebrated as a major milestone in China's semiconductor evolution. This led to a rise in nationalistic smartphone buying in the nation. It signifies a leap forward that was more than what the US had anticipated in its efforts to limit China's technological progress.
Nonetheless, the apparatus employed in its manufacturing still depended on overseas components, incorporating technology from the Dutch firm ASML Holding, along with machines from Lam and Applied Materials.
Prominent Chinese chip equipment providers are working hard to match the level of their American competitors, but their products still lack the same extensive features and complexity. Despite their attempts, China's premier lithography system developer, Shanghai Micro Electronics Equipment Group Co., still lags behind the industry front-runner, ASML.
SMIC purchased the American equipment prior to the enforcement of US restrictions in October 2022. After the prohibition was put into effect, American providers pulled their personnel out of China, and ASML barred its American workers from engaging with Chinese clients.
The US has subsequently enforced more stringent limitations, banning the sale of advanced, US-based technology to SMIC and Huawei, both of which are blacklisted due to purported connections to the Chinese military.
The imposition of trade restrictions led Huawei and SMIC to explore other options for establishing a local chip supply chain, resulting in the launch of the Mate 60 Pro.
The US has launched a probe into Huawei's processor, with Commerce Secretary Gina Raimondo promising strict measures for national security. Republican legislators are pushing for a total ban on Huawei and SMIC's access to US technology.
Trade authorities question whether SMIC can manufacture 7nm chips on a large scale without the use of ASML's lithography systems, emphasizing the technical difficulties and possible restrictions on the quantity of chip production.
The United States is encouraging its allies to impose stricter controls 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, potentially rivaling industry giants such as NVIDIA, as stated by CEO Jensen Huang.
While China maneuvers through technological progress under worldwide review, its dependence on overseas technology highlights the intricacies of global commerce and issues of national safety.
(Incorporating information from various sources)
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