SMIC is building new semiconductor production lines in Shanghai as it prepares to mass produce 5-nanometre chips designed by Huawei, sources familiar with the matter told the Financial Times. (Financial Times)

Talking point: China’s chip industry is aiming for self-sufficiency as the U.S. has restricted shipments of advanced chips to the country citing national security concerns. In August, Huawei surprised industry observers with a quiet release of its new Mate 60 smartphone, which appeared to use locally developed 7-nm, 5G capable chips—a sign that domestic semiconductor R&D in China was advancing. SMIC is using its existing stock of U.S. and Dutch equipment to make Huawei’s latest chips as alternatives to Nvidia chips, according to the FT. Nvidia CEO Jensen Huang said in Canada last week that demand is growing as governments try to secure “sovereign AI capabilities.”