The ongoing global battle for \u00a0technological supremacy\u00a0 between the United States and China has only intensified in recent years, particularly in the realm of semiconductor manufacturing. At the heart of this tension lies a crucial component: \u00a0photolithography equipment\u00a0. The U.S. government is determined to prevent China from acquiring advanced lithography machines, which are essential for producing \u00a0highly integrated semiconductors\u00a0 utilized in data centers specialized in artificial intelligence (AI). The stakes are high, and the U.S. aims to stymie China’s tech development, effectively slowing down its progress.<\/p>\n
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China has responded aggressively, pouring unprecedented resources into developing its own lithography technology. Significant investments began around 2014 and 2019, with the Chinese government allocating approximately \u00a0$19 billion\u00a0 in 2014 and an additional \u00a0$27.5 billion\u00a0 in 2019. However, these investments were just the beginning. In late 2023, the Chinese government approved a massive \u00a0$41 billion\u00a0 investment aimed specifically at boosting lithography equipment manufacturing.<\/p>\n
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Despite these efforts, lithography machines represent only one part of the equation in China’s quest for semiconductor advancement. The most promising player in the field is \u00a0Semiconductor Manufacturing International Corp (SMIC)\u00a0. Over the last two years, SMIC has painstakingly refined its technology to produce \u00a05nm integrated circuits\u00a0. Recent forecasts indicate that the company recorded a \u00a022% increase in revenue\u00a0 and a \u00a035.6% rise in profit\u00a0 during the first half of 2025 compared to the same timeframe the previous year, highlighting significant progress.<\/p>\n
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Industry expert Dr. Kim\u2014who has experience with major firms such as Samsung and TSMC\u2014believes that SMIC is on the verge of beginning \u00a05nm chip production\u00a0. Although the company has been engaged in this endeavor for years, Dr. Kim warns of a critical challenge: the \u00a0performance per wafer\u00a0 at SMIC’s current 5nm nodes is considerably low, estimated to be under \u00a030%.\u00a0<\/p>\n
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<img alt=\"China is already at the forefront in particle physics. Its new neutrino detector is the most advanced that exists\" width=\"375\" height=\"142\" src=\"https:\/\/i.blogs.es\/3b2e34\/junofinal-ap\/375_142.jpeg\"\/><\/code><\/pre>\n<\/div>\n<\/div><\/div>\n<\/div>\nWhen semiconductor manufacturers create a chip wafer, it is common for a percentage of those chips to malfunction. Normally, the \u00a0performance per wafer\u00a0 improves as engineers fine-tune their processes, but new technologies often exhibit lower efficiency initially. Dr. Kim points out that a mature lithographic technology generally offers a graduation of effectiveness, whereas newer technologies can hover around \u00a050% performance\u00a0, leading to significant wastage.<\/p>\n
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\n\nThe 5Nm chips that SMIC will manufacture for Huawei are possible thanks to a technology known as SAQP.<\/p>\n<\/p><\/div>\n<\/div>\n
To ensure economic viability, the performance per wafer for a new semiconductor integration technology needs to exceed \u00a070%\u00a0\u2014a benchmark currently unattainable by SMIC. The challenges stem from the \u00a0Multiple Patterning\u00a0 technique it employs. This method involves applying multiple layers of patterns onto a wafer to enhance the lithographic resolution, however, this process inherently limits the viable performance rate.<\/p>\n
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Looking ahead, the 5nm circuits SMIC plans to manufacture for \u00a0Huawei\u00a0 will utilize a more advanced method known as \u00a0Self-Aligned Quadruple Patterning (SAQP)\u00a0. This sophisticated technique builds upon Multiple Patterning, propelling the production process beyond its current limitations, which were previously used for \u00a07nm chips\u00a0.<\/p>\n
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A report from \u00a0Economic Daily News\u00a0, a Taiwanese media outlet, suggests that SMIC may begin manufacturing \u00a03nm semiconductors\u00a0 equipped with \u00a0Gate-All-Around (GAA)\u00a0 transistors for Huawei by \u00a02026\u00a0. Not only that, but hints of laboratory experiments concerning the use of \u00a0carbon nanotubes\u00a0 in semiconductor manufacturing were also revealed, aiming to push the boundaries of speed and efficiency in chip production.<\/p>\n
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