In 2020, Huawei was struggling due to sanctions, cutting off its supply of chips for phones. The company made a deal to work with a Chinese company called SMIC to produce new and better chips. SMIC promised to produce more advanced chips, but it would take longer and cost more than chips from other companies. Despite these challenges, Huawei managed to release a phone called the Mate 60, powered by the new chips. The chips provided similar performance to other competitors. Some people were surprised how Huawei overcame the sanctions. The new phone sold well in China and was enthusiastically received. To produce the chips, SMIC had to use older equipment and had difficulties getting supplies due to export controls. In order to improve its productivity, SMIC also employed overseas experts to help with the production process. The Chinese government supported these efforts financially, showing its commitment to competing with other countries in the technology industry.
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