Introduction:
Chinese semiconductor manufacturer SMIC has made significant strides in chip manufacturing, reportedly producing 7-nanometer chips since last year. The revelation comes from findings by American semiconductor analyst firm TechInsights, which recently acquired a cryptocurrency-mining ASIC manufactured by SMIC. Although the chip is a custom design by MinerVa, TechInsights believes that SMIC’s 7nm process closely resembles Taiwanese foundry giant TSMC’s technology. This development could have serious implications for the US government’s efforts to limit China’s homegrown silicon capabilities amid national security concerns.
The “Steppingstone” to True 7nm:
While the current 7nm crypto-mining chip is an advanced product from SMIC, it is more likely a “steppingstone” toward a “true 7nm process” that incorporates both scaled logic and memory bitcells. The chip’s design might not adhere to the stringent requirements of true 7nm technology definition, as it lacks typical bitcell memory. Nonetheless, this breakthrough indicates SMIC’s progress in developing advanced components and raises concerns for the US government.
US Efforts to Curb China’s Chipmaking:
In light of China’s strides in semiconductor manufacturing, the US has been taking measures to slow down the country’s ability to produce advanced chips. In December 2020, SMIC was added to the US Treasury Department’s entity list, limiting its access to certain American technologies, especially those related to chip production at 10nm or lower. Additionally, the US successfully influenced the Dutch government to block ASML from selling extreme ultraviolet lithography (EUV) machines to China, a vital component in creating chips on leading-edge nodes like 7nm.
EUV vs. DUV Lithography:
One reason SMIC has managed to produce 7nm chips is by utilizing an older generation of lithography machines known as deep ultraviolet lithography (DUV). While EUV systems are not mandatory for crafting leading-edge chips, foundry giants like TSMC and Samsung eventually adopted EUV to reduce complexity and costs in their chipmaking processes. For SMIC, using DUV means it may encounter more yield issues compared to EUV, which could impact their manufacturing efficiency.
Read more: Why US Lost the Semiconductor Race to Asia Despite innovating faster
Implications for the US and China’s Lead:
The progress made by SMIC in 7nm chip manufacturing signifies China’s advancement in semiconductor technology, possibly surpassing both the US and Europe in terms of contract chip manufacturing capabilities. This development comes as a challenge for American chipmaker Intel, which has not yet made its 7nm process available to foundry customers. With Taiwan, another region with advanced chip foundry capabilities, facing continuous aggression from China, the US has raised concerns that losing access to Taiwanese chips could trigger a severe recession.
Conclusion:
China’s SMIC has made remarkable strides in chip manufacturing, producing 7-nanometer chips and possibly closing the gap with leading industry players. This development poses a challenge for the US government, which has been trying to curb China’s advancement in semiconductor technology over national security concerns. While the road ahead for SMIC may not be without challenges, its progress signifies a significant step forward for China’s homegrown silicon capabilities, potentially reshaping the dynamics of the global semiconductor industry.
