Huawei appears to be using tech from Dutch firm ASML to create advanced chips that took the West by surprise.

The US and its allies have been working to isolate Huawei from advanced semiconductor tech. Despite sanctions, Huawei surprised the industry when it unveiled the Mate 60 Pro, a 7nm-powered smartphone manufactured by Chinese firm SMIC. Officials have been trying to determine how Huawei was able to produce 7nm chips, something no one believed was possible.

According to Bloomberg, it appears SMIC and Huawei used equipment from ASML to create the chips. The Netherlands had previously followed the US in banning Huawei from access to its most advanced tech, but there is no indication the sanctions were broken.

Instead, the most likely explanation is that SMIC legally purchased some of ASML’s less advanced equipment that can still produce 7nm chips. Although the ban has been extended to include that equipment, it doesn’t go into effect until January 2024.

In the meantime, Huawei and other Chinese firms are clearly showing their resilience and ability to continue being competitive despite sanctions.