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YMTC and 21 other major Chinese chip firms were added to the US Entity List in December 2022 amid rising tensions between the two countries over trade and security issues. The list bans US companies from exporting or selling goods or services to the listed entities without a license. The report said that SMIC had used modified equipment from ASML, specifically its deep ultraviolet lithography systems, to make the processor for Huawei’s smartphone. The report said that SMIC had retooled the machines to improve their resolution and accuracy.
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