As the US government prepares to impose even tighter restrictions on China’s semiconductor sector, China-based chip makers accelerate purchases of wafer fab equipment (WFE) to ensure continued fab operations. I am letting you. However, some Chinese companies reportedly prefer to keep a low profile for these deals because they violate US sanctions. Digi Times.
Companies like SMIC, HuaHong, Nexchip and Silan Microelectronics are doing what they can, including used tools, according to unnamed industry insiders. Some of his WFE they procured cannot be shipped to China because it violates US-imposed sanctions. This is exactly why parties prefer to keep such purchases discreet.
Interestingly, even Huawei, which is heavily sanctioned by the U.S. government and is legally prohibited from sourcing anything containing U.S. advanced technology without permission, has ramped up its purchases of wafer fab tools. Perhaps you’re preparing to build a fab at SMIC and want to get as many tools as possible.
Chinese companies cannot source the tools to make 14nm class chips or chips that use more advanced manufacturing techniques. On the other hand, only his SMIC can manufacture chips at such a sophisticated node, so for most Chinese chip makers the existing limitations are not so dire. Still, the U.S. government is working with Japanese and Dutch peers to further tighten regulations on Chinese semiconductor makers. This is why foundries and integrated design manufacturers are accelerating orders.
At this point, no one knows what types of wafer fabrication equipment the US government wants to ban exports to China. As a result, the Chinese foundry and his IDM seem to buy just about anything that could help them expand and/or sustain their current operations.
At SMIC, we manufacture our chips using a variety of manufacturing processes, so purchasing both advanced and mature tools is essential. For companies like HuaHong and Nexchip that specialize in mature production technology, acquiring obsolete or second-hand equipment is essential to keeping fabs running.
Taiwanese fab equipment makers will benefit from tougher sanctions on Chinese semiconductor companies, the report said. Some have already confirmed that orders from China will be extended to he 2024, and he even 2025.
