US Commerce Secretary, Gina Raimondo, expressed her dissatisfaction over China's Huawei Technologies Co. releasing a new phone with an advanced chip during her recent visit to the country. However, she stated that the US does not have evidence to suggest that China has the capability to produce such components on a large scale.
Raimondo testified at a congressional hearing that the US is employing every available tool to prevent China from advancing its technology in ways that could be detrimental to the US. The Commerce Department's Bureau of Industry and Security has initiated an investigation into the phone and the 7-nanometer chip it contains, which is believed to be manufactured by China's Semiconductor Manufacturing International Corp (SMIC). It remains uncertain whether SMIC has the approval from Commerce to supply Huawei, which has been blacklisted by the US.
While Raimondo refrained from commenting on ongoing investigations, she confirmed that the Commerce Department would investigate any instances where it appears a company may have violated US export controls.
Last week, a group of Republican lawmakers led by Representative Michael McCaul urged the Commerce Department to sever all ties between Huawei and SMIC and their US suppliers. They argue that the release of Huawei's new phone demonstrates the ineffectiveness of US sanctions and called for stricter restrictions.
Huawei's Mate 60 Pro phone, according to a teardown conducted by TechInsights for Bloomberg News, features a new Kirin 9000s chip that was produced by SMIC in China. This processor is the first to use SMIC's most advanced 7nm technology, indicating progress by the Chinese government in establishing a domestic chip ecosystem, as per the research firm's findings.
Questions arise about the effectiveness of the global campaign, led by the US, to prevent China from accessing cutting-edge technology, amid concerns that it could enhance China's military capabilities. The Biden administration's export controls last year targeted restricting China's access to 14nm chips, which are eight years behind the most advanced technology. Both Huawei and SMIC were also blacklisted by the US.
Recent estimates by analysts Jeff Pu and Anson Tong from Haitong International Securities suggest that Huawei plans to manufacture 15 million smartphones with its own Kirin chips in 2023. This number is projected to increase to 70 million in 2024. Though relatively small compared to the over 200 million iPhone chips produced annually by Taiwan Semiconductor Manufacturing Co., the world's leading chipmaker for Apple, Huawei appears to be rapidly expanding its chip capacity with assistance from SMIC.