Huawei and SMIC Will Produce 3nm Chips Despite Sanctions

One year ago, Huawei and Chinese chipmaker SMIC (Semiconductor Manufacturing International Corporation) outlined plans to develop 3nm chips using an alternative to EUV (Extreme Ultraviolet) lithography, which is restricted in China due to US trade sanctions. Instead, the two companies proposed using self-aligned quadruple patterning (SAQP) lithography to work around these limitations.

Fast forward to today, and a new report from Taiwan reveals that Huawei has officially begun R&D on 3nm chip production for China’s domestic semiconductor industry. Huawei is reportedly satisfied with SMIC’s method for producing the 5nm Kirin X90 chip — used in the MateBook Pro laptop — which utilizes older deep ultraviolet (DUV) lithography machines acquired before the US ban.

However, DUV-based chipmaking requires complex multi-patterning steps (double, triple, or quadruple) to replicate the resolution achievable with EUV. This process is more costly, lowers yield, and produces less precise results, making 3nm production significantly more challenging.

To boost performance and efficiency, Huawei plans to use Gate-All-Around (GAA) transistors in its 3nm chips — a technology currently employed only by Samsung at this node. GAA architecture helps reduce current leakage and improves drive current, offering better energy efficiency and computing power. Huawei also reportedly intends to experiment with two-dimensional materials to further enhance chip capabilities and lower power usage.

Additionally, Huawei is working on a 3nm chip design that replaces silicon with carbon nanotubes — a futuristic material with the potential to surpass traditional transistor performance. According to the report, Huawei expects to complete the design (or “tape-out”) phase for its 3nm node in 2025. Once completed, the design will be handed off to SMIC for manufacturing preparations.

Before US sanctions took effect in 2020, Huawei sourced 5nm chips from TSMC. After the ban, the company had to rely on Qualcomm’s 4G Snapdragon chips until it debuted its 7nm Kirin 9000s in the Mate 60 Pro — reintroducing 5G to its smartphones and marking a significant milestone in its chipmaking comeback.