
Biden Administration Investigates SMIC's Potential Violation of U.S. Export Rules for Huawei Chip
Biden administration is assessing if China's SMIC violated US export rules to make chips for Huawei's Mate 60 Pro phone.

The Biden administration has yet to determine if China's leading chipmaker, SMIC, violated U.S. export regulations in producing a chip for Huawei's Mate 60 Pro phone. During a recent congressional hearing, Alan Estevez, a senior Commerce Department official responsible for export policy, acknowledged the need to assess whether SMIC had indeed breached U.S. export rules in manufacturing the sophisticated chip that powers Huawei's phone.
Unresolved Questions and Pressure from China
Several questions have arisen regarding the acquisition of U.S. tools by SMIC for the production of this chip. Despite the release of Huawei's Mate 60 Pro nearly seven months ago, the Biden administration has not yet arrived at a definitive conclusion concerning the legality of the advanced semiconductor's production. This delay comes in the midst of mounting pressure from hardliners in China, urging action against both companies since the unveiling of the phone powered by the sophisticated chip manufactured at SMIC in August. The Mate 60 Pro has been regarded as a symbol of China's technological resurgence, despite ongoing efforts by the U.S. to impede its ability to produce cutting-edge semiconductors.
The Biden Administration's Review and Restrictions
The unveiling of the Huawei Mate 60 Pro prompted a comprehensive review by the Biden administration to gain insight into the specifics of the chip powering the device, which is the most advanced semiconductor produced by China to date. When questioned about SMIC's potential use of American tools in producing the chip for Huawei, Estevez refrained from discussing ongoing investigations but acknowledged shared concerns about the matter.
Both Huawei and SMIC have been subjected to trade restrictions by the U.S. government. Huawei was placed on the sanctions list in 2019 for alleged violations, while SMIC was added to the same list in 2020 due to purported ties to the Chinese military industrial complex. Despite being on the list, both companies have consistently denied any wrongdoing. Although inclusion on this list typically prohibits U.S. companies from supplying the targeted firms, the Trump administration authorized specific item exports to both companies, facilitating the flow of billions of dollars in U.S. goods to them. Notably, the Biden administration introduced new constraints in 2022 on the export of chipmaking tools to advanced Chinese chip factories.
Call for Allied Support and Future Strategies
The Biden administration is calling on its allies to cease the shipment of chipmaking tool components to China, mirroring the U.S.'s own effort to restrict their export. This forms part of a broader strategy aimed at undermining China's chipmaking capabilities. Additionally, the administration is focusing on targeting the service agreements that maintain the functionality of older tools, with Estevez emphasizing that "those tools will ossify over time, and that process will be degraded." These measures reflect the administration's commitment to curbing China's technological advancement in the semiconductor industry.
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