The latest Huawei Mate 60 Pro comes with double the number of Chinese chips compared to its predecessor
The premiere of the Huawei Mate 60 Pro was not a grand event. The phone was unveiled without much fanfare or announcements, but everything else about it became a major concern for the United States.
The Huawei Mate 60 Pro is priced at less than $1,000 in China, and analysts expect to sell 15 million units. Immediately after the premiere, the Huawei Mate 60 Pro achieved record sales figures, especially because it came with the new Kirin 9000S chipset made by the local SMIC.
Shortly after the premiere, TechInsights examined the phone and revealed that two-thirds of the chips in the Huawei Mate 60 Pro are made in China. Previously, Chinese chips accounted for only one third of the components in previous models.
It was TechInsight that disclosed that the Kirin 9000S chip was developed by SMIC, which caused strong reactions from representatives of the US Department of Commerce. They advocate for stricter sanctions, claiming that SMIC has violated them. The Commerce Department is determined to determine the origin and structure of the chip in order to identify who and when violated the long-standing sanctions.
The news about modern chips originating from China triggered a negative trend in the stock values of American companies, particularly impacting Apple and Qualcomm.
The current situation is that the USA wanted China to adopt the 14 nm production process, but they have evidently failed to do so. Even with the 7 nm production process, they are still two generations behind the USA and the rest of the world.
As reported by Reuters, one issue that SMIC currently faces is the low yield rate of its chips, which refers to the efficiency of the production process. The yield rate is barely above 50%, significantly lower than the industry norm of 90%. This raises doubts about whether SMIC can meet Huawei's chip demands with its current capacity.
Meanwhile, the Chinese government has announced a fund of over 40 billion dollars aimed at supporting semiconductor tool manufacturers. This initiative aims to enhance independence from technologies currently dominated by the Netherlands and Japan.