News China's SMIC Allegedly Violated U.S. Sanctions Selling Chips to Huawei

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usertests

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This is the important part:

The trade restrictions imposed on Huawei and SMIC include the Foreign Direct Product Rule meant to bar any company anywhere in the world from using tools from the United States to manufacture a chip for Huawei.

But suppliers to Huawei and SMIC have received billions of dollars' worth of licenses to sell U.S. technology to the companies despite their being on the trade lists, Reuters has previously reported. About 90% of the licenses were for sales to SMIC.

The sanctions were half-hearted, so of course they didn't work.

It's probably too late to fix this problem, and I wouldn't be surprised if China continued to get these tools through third parties after tougher sanctions are applied. Meanwhile they will develop domestic alternatives in parallel.

They have their sights set on ASML. China will get EUV one way or another eventually, but these SMIC 7/5nm DUV/FinFET nodes are probably good enough for a lot of computing.

 
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