SHENZHEN, China/SAN FRANCISCO, California : Huawei Technologies' breakthrough in making an advanced chip underscores China's determination and capacity for fighting back against U.S. sanctions, but the efforts are likely very costly and could prompt Washington to tighten curbs, analysts said.Huawei unexpe
SHENZHEN, China/SAN FRANCISCO, California : Huawei Technologies' breakthrough in making an advanced chip underscores China's determination and capacity for fighting back against U.S. sanctions, but the efforts are likely very costly and could prompt Washington to tighten curbs, analysts said.
Its findings and claims by early users about the phone's powerful performance indicate China is making some headway into developing high-end chips, even as Washington has over the recent years ramped up sanctions to cut its access to advanced chipmaking tools. Huawei declined to comment. SMIC and China's State Council, which handles press queries on behalf of the Chinese government, did not immediately respond to requests for comments.The most advanced chip SMIC had previously been known for making was 14nm, as it was barred by Washington in late 2020 from obtaining an EUV machine from Dutch firm ASML.
Whoever is making the chip, Tilly Zhang, an analyst at Gavekal Dragonomics, downplayed the success, citing a low yield rate which reduces the number of useable chips from each wafer and raises costs, and new export controls imposed by the Netherlands that will limit SMIC's access to more immersion DUV machine.
Some research firms forecast SMIC's 7 nm process has an yield rate below 50 per cent, versus the industry norm of 90 per cent or more, and it would limit shipments to around 2-4 million chips, not enough for Huawei to regain its former smartphone market dominance.