Huawei's latest smartphone achievement with Mate 60 Pro could lead to tighter US sanctions

Huawei recently made waves in the tech industry by introducing a new phone called Mate 60 Pro. The reason it became so popular was a single aspect, its chipset. Huawei is facing strict sanctions from the US to acquire chipsets. At the same time, the company introduced a phone that has an advanced 7nm architecture called Kirin 9000s. Additionally, the modem also managed to match 5G network speeds. Now analysts caution that these efforts may come at a significant cost and could lead to tighter restrictions imposed by the US, according to a report by Reuters. 

The unexpected unveiling of the latest Mate 60 Pro smartphone by Huawei occurred during the visit of U.S. Commerce Secretary Gina Raimondo to China. Simultaneously, the Chinese government is preparing to launch a $40-billion investment fund to bolster its struggling chip sector.

The chip milestone "demonstrates the technical progress China’s semiconductor industry has been able to make without EUV tools. The difficulty of this achievement also shows the resilience of the country’s chip technological ability," said TechInsights analyst Dan Hutcheson. EUV refers to extreme ultraviolet lithography, used in making chips with 7nm or more advanced processes.

While this achievement highlights China's capabilities, it also poses geopolitical challenges to countries seeking to restrict its access to critical manufacturing technologies. Analysts predict that the outcome may lead to even greater restrictions than those in place today.

Also read: Why Huawei Mate 60 Pro may be the most significant smartphone launch in 2023

Jefferies analysts suggest that the latest findings could trigger an investigation by the US Commerce Department's Bureau of Industry and Security. It may also intensify the debate in the US about the effectiveness of sanctions and prompt the government to consider harsher tech sanctions in an upcoming competition bill against China.

Prior to this new chipset, SMIC's most advanced chip was the 14nm, as it was previously prohibited from obtaining an EUV machine from Dutch company ASML. TechInsights suggested that SMIC had managed to produce 7nm chips using different equipment. Some analysts speculate that Huawei may have purchased the technology and equipment from SMIC rather than collaborating with them.

Also read: Huawei is building secret network for chips, trade group warns