SMIC (Semiconductor Manufacturing International Corp) is the largest Chinese semiconductor manufacturer with a global market share 5.32%. Only TSMC and Samsung surpass it. Currently this is the only Chinese company that has the necessary technology to manufacture 7nm integrated circuitsbut Hua Hong Semiconductor, China’s second largest chip producer, is developing the technology necessary to manufacture this class of semiconductors.
The US Department of Commerce has confirmed without intending it that Hua Hong Semiconductor is very serious with its 7nm photolithography. And it has done so because, according to Reutershas notified the most important lithography and wafer processing equipment manufacturers in the US that they no longer have permission to deliver their most advanced machines to this Chinese company. The purpose of this US entity is clear: it aims to make it difficult for Hua Hong Semiconductor to conclude the development of its 7nm lithography.
Lam Research, Applied Materials and KLA already have one more obstacle in China
Department of Commerce technicians analyze export requests within the framework established by current regulations and approve or deny the sale of integrated circuits and wafer processing equipment to China. The current regulation is the most effective tool at the disposal of the US Government to try to slow down the development of China’s semiconductor industry and prevent it from acquiring the capacity to manufacture cutting-edge integrated circuits in the short or medium term.
Hua Hong is preparing to start production of 7nm chips at its Shanghai plant
Hua Hong Semiconductor’s division specializing in third-party chip manufacturing is called Huali Microelectronics, and it is preparing to launch the production of 7nm integrated circuits at its Shanghai plant. The sources that have revealed this information assure that Huawei has collaborated with Huali Microelectronics on this project, which invites us to reach two reasonable conclusions.
The first is that Huali’s 7nm lithography is likely to play an essential role in GPU production capacity for artificial intelligence (AI) from both Huawei and other Chinese companies. And the second conclusion is actually a plausible hypothesis. And, like SMIC, Huali does not have access to ASML SVU teams. For this reason, it is very likely that with the help of Huawei it has developed security techniques. multiple patterning to be able to manufacture 7nm chips with the UVP machines in its possession.
Lam Research, Applied Materials and KLA are three of the US companies that the Commerce Department has notified that they can no longer provide Hua Hong Semiconductor with their most advanced wafer processing equipment. China is a very important market for these companies, so presumably they are going to lose several billions of dollars in sales. Lin Jian, the spokesperson for the Chinese Ministry of Foreign Affairs, has declared that his country expects the United States to stabilize global industrial and supply chains and keep trade functioning normally.
Image | TSMC
More information | Reuters
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