SMIC, Huawei Set To Defy US Sanctions With 5nm Chips: FT

(CTN News) – Semiconductor Manufacturing International Corp (SMIC) is getting ready to mass produce Huawei’s new 5-nanometer chips.

Both companies have been sanctioned by the US for their ties to the Chinese military, but have emerged as key components of the Chinese government’s efforts to defy chip export controls and establish semiconductor self-sufficiency.

In a report citing people familiar with the matter, SMIC has begun mass production of semiconductors in Shanghai.

FT reports that the chipmaker plans to produce the 5nm chips using its existing stock of US and Dutch equipment.

In the last three months of 2023, China spent an unprecedented $10.6 billion to stock up on chipmaking equipment, as the US and its allies, Japan and the Netherlands, tightened chip restrictions.

In 2024, the Dutch government revoked ASML’s license to manufacture lithography systems crucial to chip manufacturing, making it one of China’s largest suppliers.

Nevertheless, SMIC is preparing to make Huawei’s Kirin chips on a large scale by using its stockpiled equipment. The chips will be used to power new versions of Huawei’s smartphones, according to FT, which cited sources with knowledge of the plans.

There are also plans for AI chips

The report added that SMIC would also produce Huawei’s Ascend 920 chips on 5nm if their production was “successful enough” for smartphones.

Currently manufactured using 7nm technology, Ascend chips are being viewed as the closest rival to Nvidia’s most advanced chips.

The US government has prohibited Nvidia from selling advanced artificial intelligence (AI) chips in China as part of export control measures. Due to this, demand for Huawei’s Ascend chips has surged as Chinese AI firms shun slower chips or move to reduce their dependence on Nvidia for fear of tighter export controls.

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