SMIC, a major player in the semiconductor industry, is navigating through challenges to develop its advanced 5nm chip by 2025. The Chinese company, which lacks access to cutting-edge EUV lithography equipment, has relied on older DUV technology for its chip manufacturing efforts. This decision has led to increased costs and lower yields compared to industry leaders like TSMC, whose figures in the same technology are significantly better.
Reports indicate that SMIC’s endeavor to break through the 7nm barrier and move towards 5nm technology has encountered several hurdles. The production costs of their 5nm chips are expected to be up to 50% higher than those produced using TSMC’s EUV process. Furthermore, the yields are predicted to be just a third of TSMC’s output, demonstrating the struggle faced without the more refined lithography tools.
Despite these obstacles, SMIC is progressing with its plans, drawing from data observed by industry analysts. The company hopes that the eventual adoption of domestically developed EUV machines, anticipated to enter trial production by the third quarter of 2025, might ease its manufacturing woes. These machines, developed with contributions from Chinese equipment manufacturer SiCarrier, could potentially allow SMIC to produce semiconductors on more advanced nodes.
As part of its strategy, SMIC is gearing up to support Huawei’s Ascend 910C AI chip, an initiative aimed at reducing reliance on alternatives like NVIDIA. The intent is to bolster China’s self-sufficiency in high-tech chip production. This development holds promise, particularly if the locally made EUV machinery proves successful in facilitating advanced semiconductor manufacturing.
It remains to be seen how quickly SMIC can overcome these technological challenges and ramp up the production of 5nm wafers. The goal is for Huawei to leverage this technology, helping reduce China’s dependency on foreign semiconductor manufacturers. More updates on SMIC’s progress with the 5nm process are anticipated in the near future.
