Huawei, SMIC used US tech to make advanced chips, Bloomberg reports

(Reuters) -  Chinese companies Huawei Technologies and Semiconductor Manufacturing International Corp used US technology to produce an advanced chip in China in 2023, Bloomberg News reported, citing people with knowledge of the matter. 

SMIC used technology from California’s Applied Materials Inc and Lam Research Corp to develop an advanced 7-nanometer chip for Huawei last year, the report said on Thursday, adding that SMIC obtained the American machinery before the U.S. banned such sales to China in October 2022. 

White House Commerce Department, Huawei, Applied Materials, Lam Research and SMIC did not immediately respond to Reuters’ requests for comment. 

The United States has charted a slow course towards depriving SMIC and Huawei of access to advanced U.S. technology.

Huawei was added to a trade restrictions list in 2019 by the Trump administration over alleged sanctions violations. SMIC was added to the same list in 2020 for alleged ties to the Chinese military industrial complex. Both companies have previously denied wrongdoing.

Last month, Reuters reported that the U.S. government targeted SMIC and cut off its most advanced factory from more American imports after it produced the chip for Huawei which powers its Mate 60 Pro phone. 

The Biden administration has moved aggressively in recent months to halt shipments to China of more advanced AI chips, as part of its efforts to stop Beijing from receiving cutting-edge U.S. technologies that could strengthen its military.

(Reporting by Angela Christy in Bengaluru; Editing by Rashmi Aich)