I am surprise they have the capacity for consumer smartphone chips, i would imagine they would be printing chips for higher priority products like telco/base station chips and ai chips.
Like I said before, sanctions are ineffective in the longer run. While countries can sanction certain technology from going into the hand of another, there is always walkaround to it. For instance, you can just hire the person that have the knowhow. That you can't sanction. China is not some third world country that can't afford to pay if they are in need.