Despite US restrictions, China pushes ahead with production of new-generation chips

China's top chipmaker SMIC has built new semiconductor production lines in Shanghai to mass-produce chips designed by Huawei, according to the Financial Times (FT). Sources said SMIC plans to use existing equipment from the US and the Netherlands to produce 5-nanometer chips.

China is stepping up production of new-generation chips despite US restrictions. (Illustration photo)

“With the new 5nm chip, Huawei is on track to upgrade its data center chips and new flagship handsets,” one of the sources told the FT. In September 2023, the Chinese tech giant successfully started selling the Mate 60 Pro smartphone, which uses a high-end 7-nanometer chip.

Faced with growing restrictions, the Chinese government has invested heavily to develop a self-reliant semiconductor supply chain. The Biden administration is set to introduce a sweeping set of export controls in 2022 on China’s tech sector, including a ban on sales to China of certain semiconductor chips made with US equipment and a ban on shipments of chips for Chinese supercomputers and artificial intelligence systems.

China has repeatedly criticized the export restrictions, saying they go against global market rules. Last month, Chinese Foreign Ministry spokesman Mao Ning said Washington’s restrictions went beyond national security concerns and disrupted supply chains.

Beijing also announced its own sanctions against five US defense industry companies, citing their arms sales to Taiwan and unilateral sanctions imposed by the US on Chinese companies and individuals. Meanwhile, some reports suggest that Washington’s technology restrictions are not working as intended because Chinese companies continue to buy US chipmaking equipment, taking advantage of loopholes in export controls.

Phuong Anh (Source: RT)

Source: https://vtc.vn/bat-chap-cac-han-che-tu-my-trung-quoc-day-manh-san-xuat-chip-the-he-moi-ar852899.html