CHINA WATCHHuawei’s New Mate 60 Phones Are a Lesson in Unintended Consequences
In October 2022, the Commerce Department introduced a set of export-control measures designed to prevent the use of American chip technology for Chinese military purposes. Rules were also imposed that aimed to restrict China’s semiconductor production to older 14-nm technology. These controls have had varying degrees of success, but the 14-nm restriction is one of the more overt failures, as the 7-nm chips in the new Huawei’s Mate 60 phones shows.
The recent unveiling of Huawei’s newest line of smartphones, the Mate 60 series, marked an important milestone in Chinese semiconductor production. The 7-nanometre microprocessor powering the phone, known as the Kirin 9000S, is China’s most advanced yet, sporting 5G capabilities comparable to Apple’s latest iPhone.
The product’s release to the Chinese market in August coincided with US Secretary of Commerce Gina Raimondo’s visit to Beijing. This could be read as a deliberate move to embarrass Joe Biden’s administration after it attempted to kneecap Huawei’s ability to acquire such chip technology a year ago.
In October 2022, the Commerce Department introduced a set of export-control measures designed to prevent the use of American chip technology for Chinese military purposes. They were targeted specifically at Huawei and the Shanghai-based Semiconductor Manufacturing International Corporation (SMIC) and included restrictions on the sharing of US intellectual property and sales of integrated circuits and chipmaking equipment in China and to Chinese firms. Rules were also imposed that aimed to restrict China’s semiconductor production to older 14-nm technology.
These controls have had varying degrees of success, but the 14-nm restriction is one of the more overt failures. The 7-nm chips in the new Mate 60 phones far outperform 14-nm chips because they use smaller transistors. This translates to more transistors per chip, resulting in improved performance and reduced power consumption.
Although the 7-nm chip still trails behind the 3-nm chip found in the new Apple iPhone 15—produced by global chip giant Taiwan Semiconductor Manufacturing Company—it signifies China’s growing prowess in chip manufacturing. Only a generation behind the frontier of the latest technology, China is coming closer to attaining its goal of technological self-sufficiency in this critical sector using its wealth of domestic engineering talent.
For these reasons, the Kirin 9000S has sparked debate about whether US export controls are working to stop China from advancing semiconductor technology that could enhance its military capabilities. So, what are the most likely next steps for China’s semiconductor industry, and how effective have the US-imposed sanctions really been?
