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China on cusp of next-generation chip production despite US curbs

SMIC and Huawei plan to make new 5nm processor, supporting Beijing’s goal for advanced semiconductors

China’s national chip champions expect to make next-generation smartphone processors as early as this year, despite US efforts to restrict their development of advanced technologies.

The country’s biggest chipmaker SMIC has put together new semiconductor production lines in Shanghai, according to two people familiar with the move, to mass produce the chips designed by technology giant Huawei.

That plan supports Beijing’s goals of chip self-sufficiency, with President Joe Biden’s administration tightening export restrictions for advanced chipmaking equipment in October, citing national security concerns. The US has also been working with the Netherlands and Japan to block China’s access to the latest chip tools, such as machines from the Dutch maker ASML.

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