Chinese company "Huawei Technologies" and its partner "Semiconductor Manufacturing International Corp" utilized American technology to produce an advanced chip in China last year, according to informed sources. A report published by Bloomberg stated that SMIC, based in Shanghai, used equipment from American companies Applied Materials Inc and Lam Research Corp in California to manufacture a 7-nanometer chip for Huawei, the Chinese tech giant, in 2023.
This step, according to Bloomberg, indicates that "China is still unable to replace some foreign components and equipment required to manufacture advanced products like semiconductors." China has set a national goal of high priority to make its economy, the second largest in the world, capable of achieving technological self-sufficiency, and Huawei's efforts to develop, design, and manufacture domestic chips have received government support.
The ability of Chinese companies to manufacture a 7-nanometer chip has been praised as a significant leap in domestic semiconductor manufacturing. The chip produced by SMIC last year was used in the operation of the Mate 60 Pro, Huawei's most popular smartphone, which has also seen great demand from Asian tech companies.
The chip is still several generations behind more advanced chips produced by global companies, but it surpasses the position where the United States hoped to halt China's progress. According to Bloomberg, it is now prohibited for companies to sell the latest American-born technologies to SMIC or Huawei, which is based in Shenzhen. The United States has placed both technology companies on its blacklist due to alleged ties to the Chinese military, while Washington is tightening access for China in general to advanced chip manufacturing equipment and semiconductors.
