Despite strict restrictions on exports of advanced AI chips and semiconductor equipment from US companies to China, the country remains one of the country’s top tech producers. Last year it was able to use American technology to create a breakthrough chip.
Huawei Technologies and its partner Semiconductor Manufacturing International Corp. (SMIC) California-based Applied Materials Inc. and used technology from Lam Research Corporation. Make the advanced 7-nanometer chip used in Huawei’s Mate 60 Pro smartphoneSources told Bloomberg.
The chip, developed with technology from American companies and Dutch semiconductor company ASML Holding NV, is not as advanced as other companies’ chips, but is still a leader. America wants its chip-war rival to be there. In October, Bloomberg reported SMIC used technology from ASML to develop the advanced chip For Huawei smartphone.
SMIC already owned the US technology used to make the chip before the US Department of Commerce Banned US companies from supplying advanced chips and chipmaking equipment to Chinese companies In October 2022, sources told Bloomberg. In November 2022, the US banned the approval of equipment from Huawei and other Chinese companies, accusing it of an „unacceptable risk” to national security.
The commercial sector has not seen evidence that advanced chips can be made „at scale” by SMIC, Bloomberg reported. Neither Huawei, SMIC, Applied Materials nor Lam Research immediately responded to Quartz’s request for comment.
Huawei saw high demand for its Mate 60 smartphone series in the first six weeks of 2024. Apple’s iPhone sales in China fell 24% year-on-year During the same period. However, overall smartphone sales in China fell 7% year-on-year in the first six weeks of the year.