Despite US restrictions on supplying advanced chip technology to China, Huawei managed to develop a more powerful chip for its Mate 60 Pro smartphone using technology from US companies.

An earlier report mentioned SMIC using ASML’s tech in the past

Reports from Bloomberg indicate Huawei, along with its chip manufacturing partner SMIC, utilized technology from California-based Applied Materials and Lam Research to create a 7-nanometer chip. While not the most cutting-edge chip available, it surpasses what the US intended for its competitor in the ongoing chip war. This news comes after a previous Bloomberg report in October 2023 mentioned SMIC using technology from Dutch company ASML for another advanced Huawei chip.

Huawei

Crucially, SMIC reportedly acquired the US technology before the US Department of Commerce implemented a ban in October 2022. This ban restricted US companies from supplying advanced chipmaking equipment and chips to Chinese firms. Further US restrictions in November 2022 prohibited the approval of equipment sales to Huawei and other Chinese companies, citing national security concerns.

While the US Commerce Department hasn’t found evidence of SMIC mass-producing these advanced chips, Huawei enjoyed strong initial demand for its Mate 60 series in the first six weeks of 2024. During this same period, Apple‘s iPhone sales in China dropped a significant 24% year-over-year, though overall smartphone sales in China fell by 7%.

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