Washington imposed a series of export restrictions aimed at halting the development of China’s semiconductor industry.
Chinese chipmakers expect to produce next-generation smartphone processors as early as this year, despite the United States trying to block the Asian country’s technological progress, the Financial Times reported this week.
According to the report, which cites people familiar with the matter, China’s top chipmaker, the SMIC set up new semiconductor production lines in Shanghai to mass-produce chips designed by Huawei. According to the sources, SMIC plans to use its existing inventory of American and Dutch-made equipment to manufacture the five-nanometer chips.
“With the new 5nm node, Huawei is on track to upgrade its new flagship mobile phones and data center chips,” one source told the FT. The Chinese tech giant, hit by sanctions, started selling successfully in September 2023 Mate 60 Pro your smartphone, which uses high-end seven-nanometer chips.
Faced with increasing restrictions, the Chinese government has invested heavily in building an independent semiconductor supply chain. US President Joe Biden’s administration in 2022, citing national security concerns, introduced a comprehensive export control system aimed at slowing China’s technological development. The measures included banning the sale to China of certain semiconductor chips made anywhere in the world with US equipment, and blocking shipments of chips used for supercomputer systems and artificial intelligence.
China has repeatedly criticized the export restrictions, saying they run counter to globally recognized market rules. Last month, Chinese Foreign Ministry spokesman Mao Ning said Washington’s restrictions went beyond national security and would destroy supply chains.
Beijing also announced its own sanctions against five US defense companies, citing arms sales to Taiwan and unilateral US sanctions on Chinese companies and individuals. Meanwhile, some industry reports say Washington’s technology restrictions are not working as intended, with Chinese companies continuing to buy US chip-making equipment, taking advantage of loopholes in export controls.