The rise of the Chinese semiconductor sector has not gone unnoticed. Over the years, the country has been able to adapt and evolve, particularly following US sanctions. This dynamic has revealed an ecosystem capable of competing with global market leaders, including TSMC. Thus, the Chinese domestic chip industry is at a turning point, moving ever closer to technological equivalence.
Impressive Evolution of Chinese Semiconductors in the Face of Sanctions
The US sanctions have actually catalyzed a real boom for Chinese semiconductor companies. Large companies, such as Huawei, have taken bold steps to develop their own production chain. Despite attempts to slow down internationally, China has reinvented itself and seen its semiconductor market grow at high speed.
Image Source: Intel
A recent report from Nikkei Asia reveals that the competition between companies like SMIC and TSMC is getting tighter. TechanaLye CEO Hiroharu Shimizu made a visual comparison of two semiconductors, one from TSMC and the other from SMIC. Huawei’s Kirin 9010 chip, manufactured by SMIC, is starting to get closer to the Kirin 9000, which is made by TSMC.
Encouraging Performances and Promising Prospects
SMIC’s chip design has improved thanks to close collaboration with Huawei subsidiary HiSilicon. Although SMIC uses a 7nm process versus TSMC’s 5nm, optimization advances have helped narrow the performance gap. It can therefore be said that SMIC has managed to establish healthy competition despite a lower-performing process.
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In 2023, China produced more than 34.4% of the world’s chip manufacturing equipment, even doubling the figures of countries such as South Korea and Taiwan. This expansion allows Chinese companies to improve their mass production capabilities, thus consolidating their position in the international market.
Rumors are circulating that SMIC has made a breakthrough in its 5nm process without DUV equipment. While there is still a long way to go to match TSMC in terms of competitiveness, the progress made by Chinese companies in semiconductors is undeniable and points to a promising future.
