China gambling on next-generation chip manufacturing regardless of American verges
Date
2/20/2024 5:26:39 AM
(MENAFN) Despite the United States' efforts to impede China's technological progress, Chinese chipmakers, led by Semiconductor Manufacturing International Corporation (SMIC), are poised to produce next-generation smartphone processors as early as this year. According to sources familiar with the matter, SMIC, China's top chipmaker, has established new semiconductor production lines in Shanghai to undertake mass production of chips designed by Huawei.
Leveraging its existing inventory of US and Dutch-made equipment, SMIC aims to manufacture five-nanometer chips, with plans to upgrade Huawei's flagship handset and data center chips.
The move comes amid escalating restrictions imposed by the United States government to slow China's technological advancements. The Biden administration introduced
comprehensive export controls in 2022, citing national security concerns. These controls included a ban on sales to China of specific semiconductor chips manufactured globally using United States equipment, along with restrictions on chip shipments for supercomputing systems and artificial intelligence.
Facing these challenges, the Chinese government has significantly increased investments to establish a self-reliant semiconductor supply chain. Despite the restrictions, Huawei successfully launched its Mate 60 Pro smartphone in September 2023, featuring high-end seven-nanometer chips. The new efforts by SMIC to produce cutting-edge five-nanometer chips underscore China's determination to overcome external limitations and assert its position in the semiconductor industry.
China has consistently criticized the export curbs imposed by the United States, arguing that they violate globally recognized market rules. Last month, a spokesperson for the Chinese Foreign Ministry, Mao Ning, asserted that Washington's restrictions extend beyond the scope of national security, disrupting global supply chains. The ongoing developments highlight the intensifying competition in the semiconductor sector and China's commitment to achieving self-sufficiency in this critical technology, even in the face of regulatory challenges.
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