Exclusive information obtained by Reuters reveals that the United States tightened restrictions on SMIC following the launch of the Huawei Mate 60 Pro. This move is related to SMIC’s ability to produce an advanced chip for Huawei’s Mate 60 family of devices, which caught the industry, including the United States, by surprise. As expected, this development did not sit well with the Biden administration.
According to Reuters, the US increased pressure on China’s leading chip factory after Huawei’s new SoC (System on a Chip) was revealed. Several anonymous sources familiar with the matter stated that by the end of 2022, the US Department of Commerce sent dozens of letters to American suppliers of Semiconductor Manufacturing International Corp (SMIC), announcing the suspension of sales permissions to the Chinese company.
After the Mate 60 launch, SMIC faced a halt in material and part shipments from the US
Although many American suppliers had already ceased working with SMIC, this move further strangled the Chinese foundry. One anonymous source said that supplier Entegris had to stop shipments of materials and parts for chip manufacturing, worth millions of dollars.
Entegris stated that the shipments were carried out in accordance with a valid export license and were halted after receiving letters from the Department of Commerce suspending permission to ship products to SMIC. Reuters found no evidence that Entegris had violated any US laws or regulations. Consequently, upon receiving the letter, the Massachusetts-based company had no choice but to cease working with SMIC immediately. Entegris manufactures filters, gases, chemicals, and wafer-handling products, supplying essential components for chip fabrication.
SMIC reportedly did not respond to requests for comment, while Huawei, the White House, and the Department of Commerce declined to comment.
A Chinese embassy spokesperson accused the US of harassment and exaggerating accusations
“This is blatant economic bullying and it will inevitably backfire,” said a spokesperson for the Chinese embassy in Washington. “We urge the US side to stop exaggerating the concept of national security and abusing state power to suppress Chinese companies.”
US pressure on Chinese firms has been mounting since August, particularly when Huawei, a company sanctioned by the US, surprised the world with a new phone equipped with a sophisticated chip.
The Huawei Mate 60 Pro was seen as a symbol of China’s technological resurgence despite ongoing US efforts to cripple its capacity to produce advanced semiconductors. Naturally, the US obtained these chips for thorough investigation, with the current focus now on obstructing any progress by SMIC.