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Following the surprise breakthrough in chip manufacturing from China in Huawei phones, the U.S. has vowed to take the “strongest possible” action. Previously, the U.S. had levied strict sanctions against companies in the U.S. and its allies. This prevented these companies from selling advanced tech to China. That meant Huawei had to work with the Chinese company Semiconductor Manufacturing International Corporation to get chips for new products. However, the sanctions took time to take effect in foreign countries, so China was able to secure advanced equipment under the wire.
The new chip fabrication equipment, called deep ultra-violet technology, has helped Huawei and SMIC break the 7nm barrier. While it isn’t on par with the latest chips from Samsung or TSMC, it’s still a breakthrough for China. The new 7nm chips power the latest Huawei Mate 60 Pro. This was released in August. It served as an alternative flagship in China. Though the technology industry sees China’s advancements as a surprising development, the U.S. isn’t as happy about it. Some government leaders are calling for action against what they view as a violation of U.S. sanctions.
“Every time we see something that’s concerning, we investigate it vigorously,” said Gina Raimondo, the U.S. secretary of commerce, in an interview with Bloomberg. Although Raimondo refused to comment on whether an official investigation has been opened, she did call the developments “deeply concerning.” The U.S. Bureau of Industry and Security, which is an arm of the Commerce Department, has the authority to investigate further. However, Raimondo has asked for more resources to aid in that effort.
“The investigations take time,” Raimondo added. “You know, we need them to stick. We need to gather information. So at this point, all I will say is that was concerning and we will take whatever action is the strongest possible in order to protect America.”
Did Huawei violate U.S. sanctions against China with new chips?
The Mate 60 Pro has a 7nm Kirin 9000s 5G chip inside, which is the source of the questions raised by the U.S. However, it’s unclear whether China actually broke any rules in developing the chip. The sanctions try to limit what chips, and which equipment needed to make chips, can be sold to China. However, ASML Holding is a leader in chip manufacturing equipment, and Bloomberg reported that it provided the equipment required to make 7nm chips.
The problem is, that ASML is based in the Netherlands. After the U.S. drew up these sanctions, it took months for the Netherlands to adopt them. This could have given China enough time to source equipment before sanctions were enacted.
“The US has time and again abused export-control measures, and this is not in the interests of global and industrial supply chains,” said Mao Ning, a spokeswoman for the Chinese Foreign Ministry.