The Huawei Mate 60 Pro smartphone was expected to include a 5G chip from HiSilicon, the Kirin 9000s. But analysis firm TechInsights took a closer look at the chip and found evidence of a 7nm process built by Semiconductor Manufacturing International Corp (SMIC) – a partially state-owned chipmaking company in China.

It said the discovery is a milestone in China’s chipmaking capabilities, which have long trailed the West.

Last month, Huawei was accused of building a series of secret chipmaking facilities across China, under the names of other companies, to help the technology company bypass US sanctions.

The Chinese tech firm reportedly moved into chip production last year and was receiving an estimated $30bn (£23.7bn) in state funding from the government.

It is believed that China still does not have access to extreme ultraviolet (EUV) lithography  tools – a cutting-edge manufacturing process that is required to build the most advanced chips. Dutch firm...