ASML equipment used in Huawei 5G smartphone, Bloomberg reports

China’s Semiconductor Manufacturing International Corp. used equipment from ASML (ASML) to manufacture an advanced processor for a Chinese smartphone that alarmed the U.S., Cagan Koc and Diederik Baazil of Bloomberg report, citing people familiar with the matter. ASML’s immersion deep ultraviolet machines were used in combination with tools from other companies to make the Huawei Technologies chip, sources told Bloomberg, which added there is no suggestion that their sales violated export restrictions. Despite the restrictions, Huawei surprised the world in August when it introduced its new smartphone with 5G capabilities and a cutting-edge processor, according to Bloomberg. A teardown of the device conducted by TechInsights for Bloomberg News revealed the chip was produced by SMIC, demonstrating manufacturing capabilities well beyond where the U.S. had sought to stop China’s advance, according to the journalists. Shares of ASML are down 1% to $592.00 following the report.