Trump Opens Doors Wide, Yet China No Longer Needs America

China has ensured it can develop its own domestic semiconductor manufacturing technology. This represents evidence that China is no longer dependent on American chips as it was in the past.

Despite the United States opening its doors to allow China access to Nvidia’s most advanced second-generation H200 chips, China appears to be in a strong position to resist American influence.

Four sources stated that China’s Hua Hong Group is developing technology to produce AI chips. The group’s business unit, Huali Microelectronics, is preparing a 7-nanometre chip manufacturing process at its Shanghai facility, according to Reuters on Monday, 16 March 2026.

Hua Hong Group and Huali did not respond to requests for comment.

Research and development of 7nm chips by Huali at Hua Hong Fab 6 has been underway since last year. The company has received support from domestic equipment suppliers, including SiCarrier, which is backed by Huawei, to test its equipment at the Shenzhen facility.

SiCarrier did not respond to requests for comment on the report.

Meanwhile, Huali plans to produce several thousand wafers per month by the end of this year. Two sources stated that the company intends to further increase its production capacity in the future.

Huali’s 7nm line is also reported to have been used by Chinese graphics processing unit designer Biren. The production was used for tape out, a process in which chip designs become physical prototypes for testing before full-scale production commences.

Advanced manufacturing capability for 7nm chips from Hua Hong has not been previously reported. Three sources stated that Huawei previously collaborated with the company on 7nm technology.

Meanwhile, the Hua Hong Fab 6 facility is described as the most advanced of Hua Hong’s seven factories. The facility has produced chips using established technologies from 40nm down to 5nm.