US eyes taking “strongest possible” action against new chips from China

Commerce Secretary Gina Raimondo said that the US will take the “strongest possible” action to protect its national security when asked how the Commerce Department will respond to a recent chipmaking breakthrough in China, Report informs referring to Bloomberg.

“Every time we see something that’s concerning, we investigate it vigorously,” Raimondo said in an interview Monday with Bloomberg News, adding that the development is “deeply concerning.”

The remarks follow a surprisingly successful effort by China’s Huawei Technologies Co. to develop a smartphone with a relatively advanced processor. The company, blacklisted by the US, worked with partner Semiconductor Manufacturing International Corp. to manufacture the processor. The Mate Pro 60 phone went on sale in August, challenging Apple Inc.’s iPhone for customers - and showing that Huawei’s production capabilities were more sophisticated than thought.

Raimondo is under increasing pressure to act from Republicans who say that the SMIC chip demonstrates a clear violation of US sanctions against Huawei - and that the US should respond by fully cutting off both companies from their American suppliers.

Raimondo wouldn’t confirm that a formal investigation is underway into the situation, but her department’s Bureau of Industry and Security has said it is probing the “purported” 7-nanometer chip, which powers the Huawei phone.