How Did This Happen?

Huawei is a China-based mobile phone producer
Huawei is a China-based mobile phone producer

On Sept. 7, SK hynix addressed reports that its semiconductors have been found in China’s Huawei mobile phones, which are subject to U.S. sanctions. The company stated, “We have not had any dealings with Huawei,” and are looking into the circumstances of the situation.

Bloomberg reported on Sept. 7 that SK hynix’s memory semiconductors were used in Huawei’s new smartphone, the Mate 60 Pro. The phone was reported to contain LPDDR5 smartphone DRAM and NAND flash.

SK hynix reaffirmed, “It is our firm policy to fully comply with U.S. export regulations,” and emphasized, “We have no transactions with Huawei.” A spokesman added that upon realizing their memory chips were used in Huawei’s new products, the company immediately reported it to the U.S. Department of Commerce’s Bureau of Industry and Security and have begun investigations.

Industry insiders speculate that Huawei might have acquired the semiconductors not through official channels with SK hynix but via unofficial routes, such as the gray market.

Furthermore, the “Mate 60 Pro” is confirmed to have a processor produced via a 7-nm process, which is a prohibited item for export to China. The U.S. Congress is urging investigations into China’s SMIC, which produced the semiconductor.

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