China makes microchip breakthrough, hitting Biden tech sanctions

The Huawei Mate 60 main processor was manufactured using technology that is now subject to trade restrictions. Credit: James Park/Bloomberg

China has made a major breakthrough in microchip manufacturing, undermining US President Joe Biden's efforts to block Beijing's access to cutting-edge technology.

The chips in Huawei's latest smartphone appear to have been manufactured using advanced technology developed in Europe. using technology now subject to trade restrictions.

Research firm TechInsights analyzed the Mate 60's main processor chip and concluded that it was manufactured using what's called EUV, or extreme ultraviolet lithography. EUV is an advanced manufacturing technology used to engrave the inner workings of a chip onto its silicon.

A closely guarded secret: EUV was developed by the Dutch company ASML and incorporated into its multi-billion dollar chip manufacturing machines. At present, China is practically prohibited from buying these machines due to US-initiated trade restrictions.

The Mate 60's processor chip was manufactured by China's International Semiconductor Corporation (SMIC), a state-owned foundry.

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While the chips used in the Mate 60 are safe, the assumption is that Beijing now has access to this manufacturing technology, which will cause alarm in Washington.

President Biden sought to limit China's access to the most advanced chip technology, fearing that they could be used for military purposes.

SMIC, China's largest microchip maker, was blacklisted by the US in 2020 due to the «unacceptable risk» that its products could be used for military purposes. SMIC denies working with the military.

TechInsights Vice Chairman Dan Hutcheson told Bloomberg, which first reported on China's tech breakthrough, «This is a very important announcement for China.»

Based on the report SMIC shares jumped 10% in Hong Kong.

Huawei raised concerns that last year China made a breakthrough in EUV technology when it filed a patent related to the technology.

The Kirin 9000S chip in the new Mate 60 appears to be using what is known as the Technology Node » 7 nanometers” is a measure of how small and therefore powerful the circuitry of a chip is.

Current U.S. sanctions prevent China from importing manufacturing equipment for process nodes smaller than 14nm, a technology that was considered cutting edge technology in 2015.

Mr. Hutcheson of TechInsights in a research note: “This brings us to the issue of China's inability to obtain the optics, materials and light sources needed to power EUV capabilities in its factories.

«SMIC's technological advances are on an accelerated trajectory.»

The Huawei Mate 60 was unveiled last week during US Secretary of Commerce Gina Raimondo's visit to Beijing.

p>Huawei and SMIC have been contacted for comment.