Learn more about the Mate 60. This Huawei phone will impress you!
The Chinese manufacturer's announcement of a new mobile phone model, the Huawei Mate 60, raises questions about the country's apparent technological limitations. This is because there were doubts about the manufacturing of cutting-edge semiconductors, due to the United States' threat to block further progress in semiconductor development in China.
However, it seems that this attempt by the Americans to stop China's growth at this point was frustrated. Understand better below.
Advanced chip model
An analysis by Canadian intelligence firm TechInsights has found evidence that Huawei's new phone lineup uses 7-nanometer chips from Chinese chipmaker Semiconductor Manufacturing International Corporation (SMIC).
Until now, the technology has been dominated exclusively by Intel, Samsung and TSMC. China's largest chipmaker has been slow to reach the forefront of manufacturing the technology, largely due to pressure from the United States.
In recent years, the U.S. has passed laws and enlisted the help of allies to block China’s access to the materials and machinery needed to make the tiniest chips used in smartphones and tablets. To produce 7-nanometer (or smaller) chips at scale and affordably, companies including Intel, Samsung and TSMC are using a technology called extreme ultraviolet (EUV) lithography. This allows ultraviolet light to create tiny patterns and engrave complex patterns.
The Dutch company ASML, the only machine manufacturer in the world equipped with this technology, is banned from selling in the Chinese market. The ban was imposed by the Dutch government in 2019. According to André Sacconato, professor and advisor at Fecomercio SP, such export blocking measures have spread to several countries under US influence.
“The Netherlands is in a vacuum. In this context, it is much better to associate it with the United States than with China.” The professor explains that if the country were to sell to China, there would be a boycott of its businesses by the US. In other words, the Netherlands had no choice.
Boycott China
In 2022, US President Joe Biden signed into law the Chip Industry Promotion and Regulation Act, known as the Chips and Science Act. This law further strengthens controls on exports of semiconductor equipment to China.
“Since chips are considered a national security product, it is permissible to have separate laws for them,” emphasizes André Sacconato. Other countries such as Japan, South Korea, the United Kingdom, India and Australia have also adopted laws and regulations influenced by the United States.
And how did Huawei achieve this?
Experts believe that SMIC used machines equipped with DUV lithography technology, also manufactured by ASML, to manufacture the chips used in the Huawei Mate 60. The machinery is not very advanced, so the cost of producing such small chips using this technology is high.
Foreign analysts believe that SMIC was able to achieve competitive prices thanks to loans from the Chinese government. Republican lawmakers sent a letter to the acting US Secretary of Commerce saying that the detection of 7-nanometer technology in mobile phones suggests a “violation of US regulations.”
In a new crackdown this year, the Netherlands expanded export controls on products sold by ASML, including some DUV lithography systems manufactured by the company. The brand said in a statement that it was unlikely to receive approval to ship its cutting-edge DUV technology to China after Jan. 1, 2024.
Even with the restrictions scenario, China has increased imports of equipment needed for chip manufacturing. Imports of these products from Japan and the Netherlands in June and July this year were already 70% higher than in the same period in 2022.
Despite China’s significant investment, the country is still far from being able to produce chips similar to those at 5-3 nanometers. On average, SMIC is four to five years behind its main competitors in this market.
