Huawei Masters 7nm Chips, Casting Doubt on the Effectiveness of US Sanctions

Huawei has unveiled its new smartphone, the Mate 60 Pro. Its main feature is the Kirin 9000s processor, manufactured in China by the Semiconductor Manufacturing International Corp. This processor marks the first Chinese chip to utilize cutting-edge 7nm technology, signaling that the Chinese government is taking steps to create its own ecosystem of modern chips, according to Bloomberg.

Much remains unknown about the progress of SMIC (Semiconductor Manufacturing International Corporation) and Huawei in chip production, including whether they can produce them in large quantities or at a reasonable cost. However, the Mate 60's processor calls into question the effectiveness of the US-led global campaign aimed at preventing China from accessing advanced technologies.

Last year, through export controls, the US administration attempted to hinder China's access to 14nm chips, which lag behind the most advanced technologies by about eight years. The US also blacklisted Huawei and SMIC. Now, China has demonstrated that it can produce at least a limited number of chips using 7nm technology, trailing behind advanced technologies by only five years, moving closer to its goal of self-sufficiency in the critical semiconductor industry.

The sudden unveiling of the Mate 60 Pro sparked wild speculation. Last week, Huawei quietly released the phone on the market without providing key specifications, such as the processor design or wireless connectivity speed. This happened during a visit to China by US Secretary of Commerce Gina Raimondo, whose department has implemented many key export control measures concerning China.

The phone has generated speculation because Huawei is at the center of tension between Washington and Beijing, being subjected to sanctions over allegations of aiding the Chinese military. Once the world's largest telecommunications provider, the company is making every effort to find alternatives to American schemes since the Trump administration added Huawei to its list of entities in 2019.

Chinese chip production still lags in terms of performance, as the primary processor in the Mate 60 Pro lags behind the world's most advanced technologies by two generations. However, Huawei and SMIC may be approaching the limits of what they can achieve without more advanced chip production equipment.