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Home ยป Analysts predict that Huaweis latest chip advancement will intensify US scrutiny
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Analysts predict that Huaweis latest chip advancement will intensify US scrutiny

Nicole RoneyBy Nicole RoneySeptember 6, 2023No Comments3 Mins Read
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Headline: Huawei’s Breakthrough Chip Highlights China’s Resilience Against U.S. Sanctions

Date: [Insert Current Date]

In a remarkable display of determination and capacity, Huawei Technologies recently achieved a major breakthrough in chipmaking, showcasing China’s resolute response to U.S. sanctions. The unveiling of the latest Mate 60 Pro smartphone equipped with Huawei’s proprietary Kirin 9000s chip, manufactured by China’s leading contract chipmaker SMIC using advanced 7 nanometre (nm) technology, serves as a testament to China’s progress in developing high-end chips despite mounting challenges.

TechInsights, a renowned technology analysis firm, conducted a teardown of the Mate 60 Pro smartphone and discovered the impressive advancements made by China’s semiconductor industry. Of particular note is the fact that these advancements were achieved without the use of EUV (Extreme Ultraviolet) tools, which are typically essential for creating 7 nm or more advanced chips.

These findings have not gone unnoticed, with industry experts predicting that they may potentially trigger a probe from the U.S. Commerce Department’s Bureau of Industry and Security. The news also reignites the ongoing debate in the U.S. over the effectiveness of sanctions imposed on China. As the U.S.-China tech war continues to escalate, it is anticipated that even harsher tech sanctions could be enforced against China.

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While some analysts downplay the significance of Huawei’s chip development, citing a low yield rate and export controls imposed by the Netherlands on SMIC, the Chinese government remains undeterred. China is set to launch a new state-backed investment fund worth $40 billion, aimed at supporting its chip sector and narrowing the gap with its U.S. and other rivals.

However, challenges persist for Huawei and SMIC. SMIC’s 7 nm chip production currently struggles with a yield rate below 50%, resulting in limited shipments and hindering Huawei’s ability to regain its dominance in the smartphone market. In the face of limited availability, Huawei may have to resort to 10 nm chips, which are characterized by a significantly lower yield rate of approximately 20%, well below industry standards.

It is worth noting that the high costs associated with producing controlled technologies in China, due to U.S. controls, are likely being covered by the Chinese government. This further underscores the geopolitical challenges faced by countries seeking to restrict China’s access to critical manufacturing technologies.

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As Huawei’s chip breakthrough captures international attention, it serves as a reminder of China’s determination to innovate and develop advanced chips despite formidable barriers. The tech industry continues to watch closely as the U.S. and China navigate this high-stakes battle, one that holds far-reaching implications for the global tech landscape.

Nicole Roney

“Social media scholar. Reader. Zombieaholic. Hardcore music maven. Web fanatic. Coffee practitioner. Explorer.”

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Nicole Roney

"Social media scholar. Reader. Zombieaholic. Hardcore music maven. Web fanatic. Coffee practitioner. Explorer."

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