US may apply new sanctions against Huawei after 7nm chip launch

2023-09-06 04:11:00

After Huawei launches the new Mate 60 Pro with a proprietary 7nm chipset, sources at the US Department of Commerce say the country is reviewing the situation to apply new sanctions against the Chinese manufacturer.

That’s because production of the Kirin 9000s is happening in partnership with SMIC and the chipset should make Huawei return to the 5G-enabled smartphone market.

In other words, in this case we have the violation of not one, but two high-level sanctions applied by Washington. Therefore, those people who also work with the White House are betting on even more severe sanctions.

Jake Sullivan, US National Security Advisor, said:

the United States must stay on course with a set of technology restrictions focused narrowly on national security concerns, not the broader trade issue. That’s where our emphasis has been. That’s where it will continue, more or less, regardless of the outcome.

As much as US analysts believe that the Biden administration should react to Huawei’s “rebirth”, it is still unclear what kind of restriction can be applied against the company.

As it produces the Kirin 9000s jointly with SMIC – which is also under sanctions – and on Chinese soil, the US government can veto the shipment of less advanced machines to the chip maker. Sanctions can also be applied on a financial level.

However, anticipating this kind of American reaction, the Chinese government is ready to launch a new billionaire fund to further encourage local chip production.

Not only that. Beijing will also have an exclusive line of credit for the production of machines that are used to assemble chips. The Chinese intention is to be completely independent of US sanctions.

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