SMIC defies U.S. sanctions, advances chip production for Huawei

China's chipmaker SMIC has defied U.S. sanctions by producing advanced 7 nanometer chips for Huawei's Mate 60 smartphone. Now, SMIC is reportedly setting up production lines for even more advanced 5 nanometer chips. Despite lacking EUV tools, SMIC is leveraging existing equipment and outside expertise to advance its capabilities. This poses a challenge to the U.S. semiconductor industry and raises questions about China's long-term self-sufficiency in chip manufacturing.