- US officials cancel licences for companies selling advanced chips to Huawei and SMIC.
- The decision follows Huawei’s use of a 7nm chip, raising concerns about export controls.
What happened: Export controls tighten after Huawei’s new chip
The US government cancelled export licences. These licences let companies like Intel and Qualcomm sell advanced chips to Huawei Technologies. This happened after Huawei launched its Mate 60 Pro phone. The phone uses a 7-nanometre chip. People say SMIC made the chip. This shows China is making progress in chip technology even with US limits. The US had already limited sales to SMIC since 2019. Now it stops companies from sending technology and parts to both Huawei and SMIC.
The US Commerce Department said it removed licences to protect national security. Companies affected got notices directly. Some sales already started may still finish. The Trump administration put SMIC on a restricted list in 2020 because of worries about its ties to China’s military. Now the US is making those limits stronger. The aim is to stop China from getting better at making important chips.
Also Read: Taiwan puts Huawei and SMIC on export control list
Also Read: Trump tariffs hit Apple and Samsung as Huawei grows
Why this is important
This shows the US is getting tougher in its tech fight with China. The new 7nm chip from Huawei made people worry that the old export limits did not work well enough. The chip is made using older tools called deep ultraviolet lithography (DUV). It does not use the newest tools called extreme ultraviolet (EUV). This means China still faces problems but can still improve chip making.
The new rules could change how big chip companies do business. Intel and Qualcomm might lose sales in China, which is a very big market for them. China might try to make more chip tools and materials by itself because of this. Experts at TechInsights checked Huawei’s Kirin 9000s chip and said it uses 7nm technology. This shows SMIC is improving even with the US sanctions. The US is also stopping companies like ASML from selling chip tools to China. This adds more pressure. This is part of a larger plan to protect key technology and slow down China’s progress in semiconductors.
