Huawei and SMIC Chips Are Using US Tech, Reports Suggest

Huawei Company

Individuals familiar with the matter disclosed that Chinese corporations Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC) utilized US technology to fabricate a sophisticated chip in China during 2023.

Reportedly, SMIC employed technology sourced from California-based Applied Materials Inc and Lam Research Corp to engineer an advanced 7-nanometer chip for Huawei last year.

The report highlights that SMIC acquired this American machinery before sales to China were prohibited by the US in October 2022.

Huawei Company

Requests for comment from the White House Commerce Department, Huawei, Applied Materials, Lam Research, and SMIC went unanswered

The United States has pursued a gradual approach to curbing SMIC and Huawei’s access to advanced US technology.

In 2019, the Trump administration added Huawei to a trade restrictions list due to alleged sanctions violations, followed by SMIC’s inclusion in 2020 over purported connections to the Chinese military-industrial complex. Both entities have refuted these allegations in the past.

Last month, it was reported that the US government took action against SMIC, severing ties with its most sophisticated factory by restricting further American imports. This move came after SMIC produced a chip for Huawei, which powers its Mate 60 Pro phone.

Huawei Company

In recent months, the Biden administration has taken assertive measures to impede the shipment of more advanced AI chips to China.

This is part of broader efforts to prevent Beijing from acquiring cutting-edge US technologies that could potentially bolster its military capabilities.

Nate O'Hara
Nathan is a seasoned commerce writer with a passion for unraveling the intricacies of the business world and distilling them into engaging narratives. During his academic journey, he delved deep into subjects like economics, marketing, and entrepreneurship, honing his analytical skills and developing a keen understanding of market dynamics.