China very badly wants to be self-sufficient when it comes to manufacturing chipsets. But it has had a problem as the U.S. has tried to prevent this from happening. China's largest foundry, Semiconductor Manufacturing International Corporation , could only produce chips using its 14nm process node compared to the 5nm process node being used by leading foundries TSMC and Samsung .
This is important because the lower the process node, the higher the number of transistors that can fit inside a chip. And the more transistors inside a chip, the more powerful and energy-efficient the chip is. With 15 billion transistors in Apple's A15 Bionic, you have to wonder how such components can be designed.
In 2020, an export rule change made by the U.S. Commerce Department blocked foundries around the world from shipping cutting-edge chips to China's Huawei if those foundries manufacture chips using U.S. technology. As a result, Huawei has been forced to use Qualcomm's current Snapdragon chips that are modified to run 4G speeds only thus blocking Huawei from producing 5G capable phones.
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