SMIC used technology from California’s Applied Materials Inc and Lam Research Corp to develop an advanced 7-nanometer chip for Huawei last year, the report said on Thursday, adding that SMIC obtained the American machinery before the US banned such sales to China in October 2022.

White House Commerce Department, Huawei, Applied Materials, Lam Research and SMIC did not immediately respond to Reuters’ requests for comment.

The US has charted a slow course towards depriving SMIC and Huawei of access to advanced US technology.

Huawei was added to a trade restrictions list in 2019 by the Trump administration over alleged sanctions violations. SMIC was added to the same list in 2020 for alleged ties to the Chinese military industrial complex. Both companies have previously denied wrongdoing.

Last month, Reuters reported that the US government targeted SMIC and cut off its most advanced factory from more American imports after it produced the chip for Huawei which powers its Mate 60 Pro phone.

The Biden administration has moved aggressively in recent months to halt shipments to China of more advanced AI chips, as part of its efforts to stop Beijing from receiving cutting-edge US technologies that could strengthen its military.