China’s leading foundry, Semiconductor Manufacturing International Corp. (SMIC), allegedly violated U.S. sanctions while producing the 7nm Kirin 9000s 5G application processor (AP) for Huawei, according to Reuters. The Kirin 9000s is now being used to power Huawei’s Mate 60 line, marking the Chinese manufacturer’s first 5G smartphone lineup since 2020. The United States had modified its export regulations in that year to prevent any foundry utilizing American technology from shipping cutting-edge chips to Huawei. Before this change, Huawei was the second-largest customer of Taiwan Semiconductor Manufacturing Co. (TSMC), following Apple.
Under the revised rules, Huawei was compelled to obtain a license from the U.S. Commerce Department to use Qualcomm’s Snapdragon chips for its flagship models such as the P50, Mate 50, and P60. However, these chips were specifically modified to be incompatible with 5G networks. The creation of the Kirin 9000s has been shrouded in controversy and secrecy. Recently, the Biden administration raised concerns that SMIC may have violated U.S. sanctions during the production of these chips for Huawei.
During a congressional hearing, Representative Michael McCaul spoke with Alan Estevez from the Commerce Department about the matter. Estevez, responsible for overseeing export policy, indicated that there is potential for SMIC to have violated U.S. export rules. When questioned about the use of American tools by SMIC to construct the chip for Huawei, Estevez stated that he could not comment on ongoing investigations but acknowledged the shared concerns.
Notably, SMIC lacks access to extreme ultraviolet lithography (EUV) machines, which are crucial in etching thin circuitry patterns onto silicon wafers for positioning billions of transistors. However, SMIC does possess deep ultraviolet lithography (DUV) machines used for producing less advanced chips. The U.S. has imposed a ban on the Dutch company ASML, the sole manufacturer of EUV machines, preventing them from selling this equipment to SMIC.
The alleged violation of U.S. sanctions by Semiconductor Manufacturing International Corp. (SMIC) in the production of the Kirin 9000s 5G application processor for Huawei has raised concerns about the industry and market forecasts. SMIC, China’s leading foundry, has reportedly been involved in the production of chips for Huawei despite the United States’ restrictions on the Chinese telecommunications giant.
The Kirin 9000s is now being used to power Huawei’s Mate 60 line, which marks Huawei’s first 5G smartphone lineup since 2020. This development is significant for Huawei as it allows them to continue producing flagship models with advanced chip technology despite U.S. export regulations. Before the change in export regulations, Huawei was a major customer of Taiwan Semiconductor Manufacturing Co. (TSMC), second only to Apple.
The U.S. modified its export regulations in 2020 to prevent any foundry using American technology from shipping cutting-edge chips to Huawei. As a result, Huawei was required to obtain a license from the U.S. Commerce Department to use Qualcomm’s Snapdragon chips for its flagship models. However, these chips were specifically modified to be incompatible with 5G networks, limiting Huawei’s capabilities in the market.
The creation of the Kirin 9000s has been surrounded by controversy and secrecy. The Biden administration has expressed concerns that SMIC may have violated U.S. sanctions during the production of these chips for Huawei. During a congressional hearing, Representative Michael McCaul discussed the matter with Alan Estevez from the Commerce Department, who suggested that SMIC could have potentially violated U.S. export rules. Estevez, responsible for overseeing export policy, acknowledged the shared concerns but could not comment on ongoing investigations.
One of the challenges for SMIC in producing advanced chips like the Kirin 9000s is the lack of access to extreme ultraviolet lithography (EUV) machines. These machines are crucial in etching thin circuitry patterns onto silicon wafers for positioning billions of transistors. Despite possessing deep ultraviolet lithography (DUV) machines for producing less advanced chips, SMIC is unable to procure EUV machines due to the U.S. ban on the Dutch company ASML, the sole manufacturer of EUV machines.
This industry and market issue raises questions about the future of SMIC and its ability to compete in the global semiconductor market. The ban on EUV machines restricts SMIC’s ability to produce cutting-edge chips, potentially hindering its growth and market share. It also highlights the broader trade tensions between the United States and China, which have had significant implications for the global technology industry.
To explore more about the semiconductor industry and related market forecasts, you can visit the following links:
– Semiconductor Industry Association
– MarketsandMarkets – Semiconductor and Electronics Market Research
– GlobeNewswire – Semiconductor Industry News
The source of the article is from the blog kewauneecomet.com