Sources in the industry claim that SMIC was able to develop 7 nm technology on its own, although officially it is at 14 nm, thanks to government subsidies for R&D and the poaching of workers from TSMC
The Chinese chip maker will invest $7.5 billion in building a new plant in the city of Tianjin, the Chinese chip maker announced on Friday.
SMIC has reached an agreement to establish a new subsidiary based in an economic development zone in Tianjin. It will have a production capacity of 100,000 12-inch wafers per month, although SMIC did not say when operations are expected to begin.
However, due to the American export restrictions that make it impossible for the Chinese to produce in technologies 10 nm or lower, the new plant will specialize in production processes of 28 nm or higher.
The announcement was made against the backdrop of increasing tensions between China and the US and within the framework of Chinese President Xi Jinping’s attempts to increase chip production. SMIC has previously announced that it plans to double its output by 2025.
SMIC has recently faced difficulties due to the decline in demand for smart phones. Combined with closures and other strict restrictions as part of China’s zero-corona policy, the company last quarter recorded its first drop in net profit in three years.
SMIC received financing from government funds and investment companies to build factories in Shanghai and elsewhere. She may receive similar assistance this time.
Poaching employees from TSMC and entering 7 nm technology
Semiconductor Manufacturing International (SMIC) coming to the 7nm chip manufacturing process was jaw-dropping. Still, while it makes headlines in the tech and trade media, it’s critical to examine the true value of SMIC’s so-called great leap forward. Can SMIC mass produce chips at the newly developed 7nm node? The blog tries to answer this important but complicated question.
SMIC surprised everyone when it reported dramatic progress to the 7nm process node about a month ago despite the lack of access to ASML’s extreme ultraviolet (EUV) lithography technology due to restrictions imposed by the US at the end of 2020. US export control restrictions imply that pubs In China they cannot produce semiconductors at a speed of 10 nanometers and beyond.
But that suddenly changed after reverse engineering company TechInsights revealed SMIC’s entry into 7nm technology. However, it is estimated that the rate of successful chips in this production reaches only 15%.
Dylan Patel, who revealed this on his blog, credits this success to a combination of huge subsidies from the government, the poaching of TSMC engineers and great expertise in SMIC’s own development of the 7nm process architecture. He also estimates that SMIC could soon overtake GlobalFoundries and become the world’s third-largest chipmaker, after TSMC and Samsung.