China has produced a 5G smartphone using an advanced silicon chip on a scale of miniaturisation thought to be beyond its capabilities due to US-led export restrictions, analysts have said.
Huawei’s Mate 60 Pro is powered by a new Kirin 9000s chip made in China by the partly state-owned Semiconductor Manufacturing International Corp (SMIC), according to analyst firm TechInsights.
The processor is the first to use SMIC’s most advanced 7-nanometre (nm) technology and suggests the Chinese government is making some progress in its attempts to build a domestic chip ecosystem, the research firm said.
Since 2019, the US has restricted Huawei’s access to chip-making tools, which are essential for producing its most advanced handset models. Despite being a manufacturer of 5G network equipment, Huawei has only been able to launch limited batches of actual 5G phones using stockpiled chips.
Huawei has been banned from supplying 5G network equipment in numerous countries, including those in the Five Eyes security alliance, due to national security concerns raised by its links to the Chinese government. Huawei has filed a lawsuit in a Lisbon court against operators there that have been banned from using its equipment in 5G mobile networks.
Dan Hutcheson, an analyst at TechInsights, told Reuters the latest development was a “slap in the face” to the US.
The most advanced chip SMIC was previously known to produce was a larger 14nm, as SMIC was banned by Washington from buying the necessary machines from Dutch firm ASML in late 2020.
However, TechInsights believes that in 2022, SMIC will be able to produce 7nm chips by tweaking simpler machines that it will still be able to buy freely from ASML. However, some research firms have predicted that only 50% or less of 7nm chips produced in this way would be usable, compared to the industry norm of 90% or more, and that would limit shipments of the resulting smartphones.
Outside China, the best 7nm chips are made using a process called extreme ultraviolet lithography (EUV) – a closely guarded technology that the US is leading a push to keep out of Beijing’s hands.
“The [US] controls impose high costs on the production of controlled technologies in China,” said Doug Fuller, a chip researcher at the Copenhagen Business School, adding that the Chinese government is likely to foot the bill.
China is set to launch a new state-backed investment fund to raise about $40bn for its chip sector, as the country steps up efforts to catch up with the US and other rivals.
Huawei began selling its Mate 60 Pro phone last week. Its specifications touted its ability to make satellite calls, but gave no indication of the power of the chipset inside.
Buyers of the phone in China have posted teardown videos and shared speed tests on social media, suggesting that the Mate 60 Pro is capable of download speeds that exceed those of top-of-the-range 5G phones.
The phone’s launch sent Chinese social media users and state media into a frenzy, with some noting it coincided with a visit by the US commerce secretary, Gina Raimondo.
Some analysts said there was a possibility Huawei had purchased the tech and equipment from SMIC to make the chip rather than doing it in collaboration.
