John Z. Lee

Opinion | Huawei’s chip triumph is proof that US tech war on China is sheer folly

The fact US-made equipment is still widely available in China despite export controls will only further undermine American allies’ appetite for a coordinated tech war

The greater the ambition for decoupling, the wider and deeper the tech restrictions must be – but few countries are interested in shutting out China

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Huawei’s new Mate 60 Pro 5G smartphone features Semiconductor Manufacturing International Corporation’s Kirin 9000s chip. Photo: Huawei Technologies handout

John Z. Lee

Published: 5:30am, 4 Oct 2023

Huawei Technologies unveiled its new 5G smartphone during a visit to Beijing by US Commerce Secretary Gina Raimondo, who is in charge of the export controls that target Chinese access to semiconductors.

Among other goals, the US controls introduced last October aim to deny China chips fabricated at process nodes of 14 nanometres and below, justified by the need to stop Beijing accessing advanced military and surveillance technologies, based on cutting-edge chips.

Yet the chip at the heart of Huawei’s Mate60 Pro – the Kirin 9000s – is not a technological revelation.

Mainland Chinese foundries like Semiconductor Manufacturing International Corporation (SMIC) have access to the same technologies that Taiwan Semiconductor Manufacturing Company (TSMC) used initially to make 7-nm chips. And evidence emerged last year that SMIC was already producing sub-14-nm chips for commercial use. Still, SMIC’s achievement is impressive and sheds light on the Chinese industry’s capacity to thrive despite US controls.

Analyses of the new Kirin chip suggests that SMIC has achieved yield rates from its most advanced fabrication process that allow chip production at a scale and cost that can cater for Huawei’s new lines of consumer devices and at the same time for the Chinese economy’s other needs.

The most straightforward explanation for this is that SMIC has continued to obtain foreign-made equipment covered by US controls introduced last October. If so, this raises questions about the wording and enforcement of the controls, including the granting of licences for the sale of controlled items to Chinese customers.