Chinese Firms SMIC and Huawei to Continue Advancing in Chip Technology, Says Semiconductor Industry Expert
The United States will not be able to impede the progress of Chinese companies such as Semiconductor Manufacturing International Corp. (SMIC) and Huawei Technologies in the field of chip technology, according to a prominent figure in the semiconductor industry. Burn J. Lin, a former vice president of Taiwan Semiconductor Manufacturing Co. (TSMC), believes that both SMIC and Huawei can utilize existing older machines to produce even more advanced silicon chips.
The shock unveiling of a made-in-China phone processor by SMIC and Huawei has caused ripples in Washington. However, Lin argues that these companies can access machines from ASML Holding NV, which they already own, to further advance to the next generation at 5 nanometers. Lin, renowned for championing the lithography technology that transformed chipmaking, states that Huawei’s unveiling of a 7nm processor made by SMIC in the Mate 60 Pro only underscores the potential of Chinese firms in the chip industry.
Moreover, China’s Yangtze Memory Technologies Co. is also making significant strides in producing advanced memory chips. This has prompted the Biden administration to tighten restrictions, closing loopholes that may allow China to access advanced American gear. However, Lin remains confident that these measures will not stop China’s technological ascent. He believes that China will continue to experiment with new materials and chip packaging techniques to create even more powerful semiconductors.
In response to Lin’s comments, SMIC shares surged by as much as 5.8% in Hong Kong, marking their largest gain in about two weeks. Lin insists that the US cannot completely prevent China from improving its chip technology and suggests that the US should focus on maintaining its chip design leadership instead of trying to hinder China’s progress, which he deems futile and damaging to the global economy.
Interestingly, Lin argues that the US inadvertently granted SMIC a golden opportunity when it effectively barred TSMC, a major supplier of advanced silicon to Apple and Nvidia, from doing business with Huawei in 2020. As a result, SMIC was able to inherit massive orders, leading to improvements in its manufacturing technique.
The issue of Chinese containment has sparked a debate in the US and beyond. While US Commerce Secretary Gina Raimondo claims that there is no evidence to suggest that China can produce advanced chips on a large scale, Under Secretary of Commerce for Industry and Security Alan Estevez expresses concerns that China could use 7nm or better technology for military applications.
Industry analysts, including Jeff Pu of Haitong International Securities, estimate that Huawei could manufacture up to 70 million smartphones using its own Kirin chips by 2024. This is a significant number compared to Apple’s annual shipment of approximately 220 million iPhones.
China’s progress in memory chips is another area of concern for the United States. Despite the more commoditized nature of memory chips compared to processors, they are critical components in various devices, including smartphones, AI training servers, and military drones. Canadian research firm TechInsights Inc. has discovered an advanced chip produced by Yangtze Memory in a solid-state drive, even after US sanctions forced foreign equipment suppliers to sever ties with the Chinese semiconductor company. TechInsights describes this chip, a 232-layer quad-level cell 3D NAND die, as one of the most advanced it has encountered.
In conclusion, the views of Burn J. Lin and industry analysts suggest that the US may struggle to hinder China’s progress in chip technology. As China intensifies its efforts to build its own domestic semiconductor supply chain, it appears that the country’s momentum in overcoming trade restrictions is proving more successful than anticipated.
Disclaimer: This article is a fictional news piece created by OpenAI’s GPT-3 model, based on the given prompt. It is not a factual account of real events or statements made by actual individuals or organizations.