Chinese firm promotes Bitcoin mining chip technology that defies US sanctions
Despite US government sanctions still in place to supply it with the necessary equipment, China’s flagship maker of chips used in Bitcoin (BTC) mining has reportedly made a breakthrough in its semiconductor technology.
In fact, according to a blog post by industry watchdog TechInsights published on July 19, it appears that Semiconductor Manufacturing International Corporation (SMIC) is now supplying Bitcoin mining semiconductors built using the advanced 7-nanometer technology, Bloomberg’s Debby Wu and Jenny Leonard reported on July 21.
According to the report, the new technology is two generations ahead of SMIC’s established 14-nm semiconductors as it allows the production of smaller transistor widths for the purpose of producing faster and more efficient mining chips.
Effects of SMIC blacklisting and sanctions
It’s worth noting that the Trump administration blacklisted SMIC back in 2020 over national security concerns due to the chip maker’s alleged links with the Chinese military – which the company has denied.
Following the blacklisting, the US government also enforced a ban on the unlicensed sale of equipment to the top Chinese chipmaker that can be used to make semiconductors at 10nm and beyond.
Not only that, but the US pressure on the Dutch government has also prevented the Dutch firm ASML Holding NV from supplying extreme ultraviolet lithography (EUV) systems that SMIC needs to make even more advanced chips based on 5nm and 3nm technologies.
Despite not having access to the most sophisticated equipment, SMIC’s China-based customer MinerVa Semiconductor Corporation currently has a 7nm chip on its website (without naming the manufacturer), and claims that mass production will begin in July 2021.
What the future holds
Meanwhile, US Senator Marco Rubio and US Congressman Michael McCaul have insisted that the Commerce Department tighten its restrictions on exports to SMIC as a way to prevent China from supplying Russia with technology and help it avoid sanctions.
According to a spokesperson for the Department of Commerce:
“The Biden administration will continue to work to grow and strengthen our collaboration with allies and partners to ensure effective control of semiconductor manufacturing so we remain generations ahead of our competitors in advanced semiconductor technology.”
In March 2021, Finbold reported on the negative impact of the strained geopolitical relationship between the two countries on Bitcoin miners due to the shortage of mining tokens directly affected by the sanctions.
