Sources say SMIC used equipment from California-based Applied Materials and Lam Research to manufacture an advanced 7nm chip in China for Huawei in 2023
Huawei's Mate 60 Pro teardown had already tied its Kirin 9000s processor to SMIC's China-made 7nm process, providing the product-level evidence behind concerns that export controls had not stopped advanced-node output. This report identifies a further part of that production chain: the earlier Mate 60 Pro chip finding now sits alongside claims that US-origin process equipment was used.
The disclosure follows reports that SMIC intended to draw on its existing US and Dutch tool stock for 5nm Kirin production and that US authorities had suspended some suppliers' permissions for SMIC's most advanced plant. It therefore sharpens the question of whether controls on new sales sufficiently address the installed equipment base at SMIC.
First-order effects
SMIC and Huawei are shown to have retained a path to 7nm chip production using equipment from Applied Materials and Lam Research, despite restrictions aimed at limiting China's access to advanced chip technology.
The reported use gives US officials a more specific rationale to scrutinize the licenses, servicing, and equipment access associated with SMIC's advanced manufacturing operations.
Second-order effects
Applied Materials, Lam Research, and other equipment suppliers could face tighter review of China-related sales and support, particularly where installed tools can be used for advanced-node production.
Chinese chipmakers have an added incentive to extend the useful life of imported tools while developing domestic alternatives, rather than treating a ban on the newest equipment as a complete production constraint.
Third-order effects
If older imported equipment can be adapted repeatedly for advanced processes, export-control policy will increasingly turn on the installed base, maintenance, and know-how—not only on whether the newest tools are shipped.
The longer-term contest is likely to be over whether China can pair retrofitted foreign equipment with domestic tools across a broader manufacturing base; Hua Hong's reported 7nm preparations suggest that capability could spread beyond SMIC, though the scale remains uncertain.
The trend: This is one data point in the shift from restricting frontier chip-tool exports to managing the enduring strategic value of equipment already inside China.
Wait hold on, this 100% should not be surprising... Many experts have warned and stated this possibility back last September (or even earlier) when Mate 60 broke the headlines.
Should be obvious that SMIC had plenty of AMAT/Lam equipment from pre-2022 sanctions that they are still using. Why would they stop? They paid money for it. Is American govt going to refund them? Even when domestic tools are sufficient for 7nm, they will still use American tools.…
Exclusive: Huawei and SMIC relied on US technology to produce an advanced chip in China last year, sources told @mackhawk and me. SMIC used gear from Applied Materials and Lam Research to manufacture an advanced 7-nm chip for Huawei. Details: https://www.bloomberg.com/...
Huawei relied on US technology to make an advanced chip breakthrough last year, suggesting China still needs some foreign components - Bloomberg: ‘including technology from Dutch maker ASML Holding NV as well as the gear from Lam and Applied Materials’ https://www.bloomberg.com/.…
Breakthrough. Huawei and its partner SMIC relied on US technology to produce an advanced chip in China last year. That suggests the Asian nation can't entirely replace certain foreign elements required for semiconductors. 7/10 https://www.bloomberg.com/...
SCOOP: Chinese tech giants Huawei & SMIC used American gear to make an advanced 7-nm chip that debuted in Huawei's Mate 60 phone last year They used Applied Materials & Lam equipment in addition to machines from Dutch firm ASML @cagankoc & me: https://www.bloomberg.com/...
“The previously unreported information suggests that China still cannot entirely replace certain foreign components and equipment required for cutting-edge products like semiconductors.” https://www.bloomberg.com/...
“If SMIC wants to advance without ASML's EUV, [they] will not be able to produce chips at a commercially meaningful volume due to technical challenges” said ASML CEO Wennink With 30 million Huawei Mate 60 phones sold, yield doesn't appear to be terrible https://www.bloomberg.com/…