Huawei and SMIC Allegedly Used US Tech for Advanced Chips

Chinese companies Huawei Technologies and Semiconductor Manufacturing International Corp reportedly utilized US technology to develop advanced chips in China, raising concerns over technology transfer.
Huawei and SMIC Allegedly Used US Tech for Advanced Chips

Huawei and SMIC Allegedly Used US Tech for Advanced Chips

Chinese tech giants Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC) have allegedly leveraged US technology to manufacture advanced chips in China, as reported by Bloomberg News. The revelation, based on sources familiar with the situation, has sparked discussions about technology transfer and international trade dynamics.

Allegations of Technology Transfer

According to the Bloomberg report, SMIC collaborated with California-based Applied Materials Inc and Lam Research Corp to create a cutting-edge 7-nanometer chip for Huawei in 2023. This partnership allowed SMIC to access American technology prior to the US government’s restrictions on such exports to China in October 2022.

“Chinese companies Huawei and SMIC used US technology to produce an advanced chip in China, raising concerns over international technology transfer.”

Response and Denials

The White House Commerce Department, along with Huawei, Applied Materials, Lam Research, and SMIC, have not yet provided official comments on the allegations. Both Huawei and SMIC have faced scrutiny in the past, with Huawei being placed on a trade restrictions list in 2019 and SMIC added in 2020 due to alleged ties to the Chinese military industrial complex. Both companies have consistently denied any wrongdoing.

Escalating Tensions

Recent actions by the US government indicate a growing concern over the transfer of advanced technologies to China. In a bid to restrict China’s access to cutting-edge US technologies, the Biden administration has taken steps to halt the shipment of advanced AI chips to the country. This move is part of broader efforts to prevent Beijing from strengthening its military capabilities through technological advancements.

Conclusion

The alleged use of US technology by Huawei and SMIC to develop advanced chips in China underscores the complexities of international technology transfer and the challenges it poses to global trade dynamics. As governments navigate these intricate issues, the need for robust regulations and oversight in the tech sector becomes increasingly apparent. The implications of such actions extend beyond individual companies, impacting broader geopolitical relations and national security considerations.