US Undersecretary of Commerce for Industry and Security Alan Estevez yesterday testified in the US Congress. When asked by House Foreign Relations Committee Chairman Michael McCaul whether Chinese semiconductor contractor SMIC violated U.S. export controls, the official replied, “Presumably yes.”
“We assume it was SMIC. I can't speak to the investigations that may or may not be happening, but we certainly share those concerns and that's certainly the response,” Alan Estevez said. He described SMIC's manufacturing process as having “low yield,” echoing earlier statements by Commerce officials who questioned China's ability to produce cutting-edge chips at scale and with consistent throughput.
Estevez heads the Bureau of Industry and Security under the US Department of Commerce – this department is responsible for export controls in the field of semiconductors, which, as the US presidential administration hopes, will be able to restrain China's development in this direction. Despite this, last summer Huawei introduced the Mate 60 Pro smartphone with a Chinese 7nm processor – the device went on sale during the visit of US Commerce Secretary Gina Raimondo to China. The chip was produced by SMIC using technologies from the Dutch ASML and the American Lam Research and Applied Materials. The equipment of these companies was imported to China before American sanctions came into force.
Now the US presidential administration is considering the possibility of introducing sanctions against other potential partners of Huawei in the production of semiconductors and some firms that may purchase equipment restricted for export and sell it to Huawei.
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