China Responds to US Embargo on Semiconductor Mfg Equipment

“Huawei Technologies’ breakthrough in making an advanced chip underscores China’s determination and capacity for fighting back against U.S. sanctions, but the efforts are likely very costly and could prompt Washington to tighten curbs, analysts said.”

“government readies a new $40-billion investment fund to bolster its developing chip sector.”

" manufactured by the country’s top contract chipmaker SMIC (0981.HK) using an advanced 7 nanometre (nm) technology"

“Some research firms forecast SMIC’s 7 nm process has an yield rate below 50%, versus the industry norm of 90% or more, and it would limit shipments to around 2-4 million chips, not enough for Huawei to regain its former smartphone market dominance.”

As expected the embargo causes China to invest in its own chip mfg technology. ASML gets a new competitor.