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The South China Morning Post reports that SMIC has made a breakthrough in 7nm technology, positioning itself competitively against Intel, TSMC, and Samsung. This advancement is attributed to reverse engineering, enabling SMIC to shrink from 14nm to 7nm in just 2 years compared to 3-5 years for TSMC and Samsung. Additionally, SMIC can produce 7nm chips without relying on advanced extreme ultraviolet (EUV) lithography tools.Last month, it was reported that SMIC reverse-engineered a chip from a bitcoin mining machine, subsequently developing a similar chip without using the most advanced extreme ultraviolet (EUV) lithography systems from ASML Netherlands.According to TechInSights, there are many similarities in process technology, design, and process improvements between SMIC's 7nm and TSMC's 7nm, allowing SMIC to adopt a similar approach to TSMC with its own 7nm process. Also, according to TechInSights, SMIC's technology has reached maturity and can compete with TSMC, Samsung, or Intel.
SMIC's breakthrough also helps reduce China's dependence on Western technology as access to advanced technology becomes increasingly restricted. Industry analysts are closely monitoring SMIC's every move as everyone wants to see if the US and its allies' sanctions can hinder China's goal of semiconductor self-sufficiency.SMIC is currently a prominent name on the list of U.S. and allied companies subject to technology export bans. Since December 2020, SMIC has been included in the Entity List by the Department of Commerce, thereby prohibited from accessing technologies originating from the United States. The aim of these bans is to restrain SMIC, making it difficult for SMIC to develop processes below 10nm to manufacture advanced processors.Moreover, the U.S. is believed to have urged the Dutch government to prevent ASML from selling new-generation lithography machines to Chinese semiconductor companies, including SMIC.Faced with these sanctions, SMIC has shifted its focus to older 28nm technology, still widely used for manufacturing chips for various industries, notably automotive. Last weekend, SMIC announced a $7.5 billion investment to develop 12-inch wafer production lines in Tianjin city. This is part of its capacity expansion plan to address shortages despite new U.S. penalties.SMIC aims to enable other Chinese companies, also affected by sanctions, to access its advanced semiconductor manufacturing processes. This move seeks to reduce China's reliance on Western technology, drawing insights from industry giants like TSMC, Samsung, and Intel to bolster mass production capabilities.Source: South China Morning Post; Interesting Engineering
