Hua Hong blacklisted for equipment shipments

The US Department of  Commerce is said to have sent letters to a number of companies reportedly including Lam Research, Applied Materials and KLA telling them not to export equipment to Hua Hong.

In response to the news the US House of Representatives Select Committee on China put a post on X saying it was  “right to act to protect America’s technological edge, adding that restrictions are about  ‘safeguarding national security’”.

Hua Hong bought a 97.5% stake in Huali Microelectronics in February. Huali was then offering 40nm and 55/65nm foundry processing services and had a 28/22nm line, its Shanghai Fab 6. It is also said to have a Fab8A believed to be under construction.

It is now said that Huali is preparing a 7nm production line at a Huali Shanghai fab with help from Huawei-backed SiCarrier, which has been co-developing the 7nm technology with Huali. The aim is said to be running a few thousand 7nm wpm by the end of this year.

If Hua Hong can get 7nm into production and yielding, it would be on the same technology level as SMIC – China’s largest foundry company with the country’s most advanced logic process.

At the end of last year Hua Hong was the No. 6 foundry worldwide with a 2.6% global market share. The acquisition of Huali brought it another 38k wpm capacity.

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