China is about to produce next-generation chips despite US restrictions

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Big Chinese chipmakers hope to make next-generation processors for smartphones this year, despite U.S. attempts to hinder Beijing's technological advance, reported this week. Financial Times.

According to the newspaper, the country's largest chip manufacturer, SMIC, has set up new production lines semiconductor plant in Shanghai to mass-produce chips developed by the Chinese technology giant Huawei. 

According to the newspaper's sources, SMIC intends to use its current 'stock' of equipment manufactured in the US and the Netherlands to produce more miniaturized five-nanometer chips. The production line will make Kirin chips, developed by Huawei's HiSilicon division and designed for new versions of 'premium smartphones'.

 
 

Although five-nanometer chips are still a generation behind the current state-of-the-art three-nanometer chips, the measurement, according to FT analysts, would show that China's semiconductor industry continues to advance gradually, despite US restrictions.

“With the new five-nanometer node, Huawei is well on its way to improving its new chips for flagship phones and data centers,” a person familiar with the plans told the FT.

Rivalry between the US and China in the chip industry

Earlier this week it emerged that the American Institute in Taiwan, the de facto US embassy in Taipei, will hold a series of briefings in March for Taiwanese chip makers on restrictions on exports of this type of technology to China, according to the Central Intelligence Agency.

In October 2023, the United States expanded wafer export restrictions to China and tightened controls on Chinese semiconductor exports to prevent the country from acquiring advanced wafer manufacturing tools and technology.

Octavio Alonso