Huawei, SMIC utilised US technology for advanced chips: Report

Huawei, SMIC in focus: Chinese firms Huawei Technologies and Semiconductor Manufacturing International Corp reportedly employed US technology to manufacture an advanced chip in China in 2023, according to sources familiar with the matter.

Bloomberg News disclosed that SMIC utilised technology from California-based Applied Materials Inc and Lam Research Corp to develop a sophisticated 7-nanometer chip for Huawei last year. 

The report noted that SMIC acquired the American machinery prior to the US ban on such sales to China in October 2022.

Requests for comment from the White House Commerce Department, Huawei, Applied Materials, Lam Research, and SMIC went unanswered at the time of reporting.

The United States has taken gradual steps to limit SMIC and Huawei's access to advanced US technology. 

Huawei was included in a trade restrictions list in 2019 by the Trump administration over alleged sanctions violations, while SMIC faced similar measures in 2020 due to alleged ties to the Chinese military industrial complex. 

Both companies have refuted any wrongdoing in the past.

The US government reportedly targeted SMIC last month, cutting off its most advanced factory from further American imports after it produced a chip for Huawei powering its Mate 60 Pro phone. 

The Biden administration has taken aggressive measures in recent months to prevent the shipment of more advanced AI chips to China, part of its broader strategy to prevent Beijing from acquiring cutting-edge US technologies that could bolster its military capabilities.

(With Reuters Inputs)