After SMIC was reportedly setting up chip production for Huawei to start mass production of 5nm wafers later this year, China’s biggest semiconductor manufacturer is now rumored to be assembling a team dedicated to 3nm chip development. For obvious reasons, the company will seek aid to help achieve this monumental goal and, in the process, obtain complete autonomy from foreign companies and the tight grip that the U.S. has on them.
SMIC said to seek subsidies from the Chinese government to help it reach its goal of mass production of 3nm wafers
As reported by DigiTimes, Joongang mentions that SMIC’s initial goal is to begin operations of its 5nm production line that will not just mass produce Huawei chipsets for a wide range of products but also AI silicon. It is reported that the Chinese manufacturer will accomplish this using the existing DUV machinery that it will likely re-purpose since ASML, the only company in the world that can supply cutting-edge EUV technology, has been barred from supplying this equipment to not just SMIC but any company of Chinese origin.
However, SMIC is looking beyond the 5nm threshold, just as it did when it partnered with Huawei to launch the 7nm Kirin 9000S. The latest report states that the semiconductor maker has formed an internal research and development team that will commence work on the 3nm node. One of the biggest obstacles standing in the way of SMIC’s goal is low yields and high production costs, but the company is said to have a strategy that involves receiving massive subsidies from the Chinese government.
Receiving subsidies will be of paramount importance to SMIC, especially given that an earlier report stated that its 5nm chips would be up to 50 percent more expensive than TSMC’s on the same manufacturing process due to using the older DUV equipment. However, we do not expect the first 3nm wafers from the company to roll out until after a few years. For starters, commercialization of Huawei’s 5nm chips will be given priority, and it is possible that this technology will be utilized for a few years before we witness a transition to the realm of 3nm wafers. Whatever decision SMIC will take, one thing is clear; this will be the most challenging task undertaken by the company.
News Source: Joongang
