China aims to boost chip production despite US restrictions

CHINESE chipmakers expect to make next-generation smartphone processors as early as this year despite US efforts to curb their development of advanced technologies, the Financial Times reported on Tuesday (Feb 6).

Semiconductor Manufacturing International Corporation (SMIC), the country’s top chipmaker, has put together new semiconductor production lines in Shanghai to mass produce chips designed by Huawei, the report said, citing sources familiar with the move.

SMIC is aiming to use its existing stock of US and Dutch-made equipment to produce 5-nanometre chips, it added.

Huawei and SMIC did not immediately reply to Reuters’ request for comment.

US companies are restricted by Washington from providing technology to SMIC without a special licence because its alleged work with China’s military is considered a threat to American national security.

Faced with these restrictions, the Chinese government has been investing heavily to develop a self-reliant semiconductor supply chain. REUTERS