In mid-May, Dr. Kim, an expert in integrated circuit manufacturing with experience at Samsung and currently researching at TSMC in the U.S., revealed that Semiconductor Manufacturing International Corp (SMIC) was about to start production of 5 nm chips . She also indicated plans to launch its first 3 nm nodes equipped with Gate-All-Around (GAA) transistors by 2026.
As China’s largest semiconductor manufacturer, SMIC has been working for at least two years on developing its own 5 nm photolithography in collaboration with Huawei. It is crucial for both companies to possess this capability, yet they are facing significant challenges with this integration technology. In her May statements, Dr. Kim noted that SMIC had achieved a wafer yield of less than 30% at this node. Remarkably, two somewhat opposing sources—Canadian platform TechInsights and the Chinese newspaper SCMP —highlight the difficulties faced by Huawei and SMIC.
According to TechInsights, Huawei’s new MateBook Fold Ultimate Design includes a SoC Kirin X90 manufactured by SMIC. This is not particularly surprising until one considers that the ambitious chip is not being produced at the 5 nm node. Instead, SMIC is utilizing its second-generation 7 nm node (N+2) with a production technique called multiple patterning . This process involves transferring the pattern to the wafer multiple times to enhance the resolution of the lithographic process.
China Requires Cutting-Edge Lithography, Yet Thrives on Mature Chips
The issue confronting SMIC and Huawei, as previously mentioned, is that multiple patterning increases chip costs and reduces production capacity. These two Chinese companies are compelled to rely on this technique in their deep ultraviolet lithography (DUV) equipment due to U.S. and Netherlands sanctions preventing Dutch firm ASML from selling extreme ultraviolet lithography (EUV) machines to its Chinese clients. The latter is capable of producing more advanced semiconductors than the DUV systems.
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According to TechInsights, Huawei’s new MateBook Fold Ultimate Design includes a SoC Kirin X90 manufactured by SMIC.
Given the current circumstances, it is reasonable to conclude that Huawei has not yet integrated 5 nm chips manufactured by SMIC into its most advanced devices due to the extremely limited production of these integrated circuits. This is supported by findings from TechInsights and SCMP. However, it’s crucial not to overlook an essential point: China requires cutting-edge lithography technologies to manufacture chips as advanced as those produced by South Korean companies Samsung or SK Hynix, Taiwan’s TSMC, or American firms like Intel or Micron Technology. Interestingly, the Chinese semiconductor industry is surviving due to its reliance on mature chips.
In fact, production of these mature chips increased by 12.5% in 2024 compared to 2023. This is quite impressive, especially considering that U.S. sanctions and those of its allies prevent Chinese manufacturers from accessing EUV lithography equipment. Since early 2024, they also cannot procure additional DUV lithography machines. Throughout much of 2022, production in China’s semiconductor sector suffered a significant decline, only to begin recovering towards the end of that year. Notably, growth was nearly steady in 2023, leading to a monumental increase in 2024, particularly towards the year’s end.
In this scenario, it is pertinent to inquire about the types of integrated circuits that Chinese manufacturers are mass-producing. The answer is quite revealing: these are chips derived from mature integration technologies , typically with nodes of 28 nm or less advanced . After all, semiconductors found predominantly in electronic devices, home appliances, or vehicles, among other products, have been produced using these technologies.
For more information, refer to the articles by TechInsights and SCMP.
The article originally titled The Two Most Important Chip Companies in China Have a Problem: They Are Stuck at 5 nm was published by Xataka and written by Juan Carlos López.