Severe constraints on the development of China’s chip industry, caused by strict export control rules that prevent the People’s Republic of China’s chip makers from obtaining advanced wafer fabrication equipment (WFE), have caused local experts to rethink the country’s semiconductor strategy. It is an opportunity to do so. It’s clear that China will need to replace foreign-made tools to make cutting-edge chips in the long run, but for now, the country’s chip makers will have to complete mature nodes to remain competitive. It will need to be focused, says the report. Digi Times.
Meanwhile, Jiwei Research estimates that between 2022 and 2026, there will be 25 new 300 mm fabs in China, with total capacity starting at over 1.6 million wafers per month. This could significantly increase China’s chip production capacity, increasing China’s total 300mm capacity to 2.76 million WSPM by 2026.
Without access to advanced equipment, all of these fabs will have to focus on 20nm to 90nm class technologies, but are better off relying on domestic suppliers. As a result, companies within China’s semiconductor supply chain, ranging from raw materials to machinery to electronic design automation (EDA), are reportedly shifting their growth strategies and prioritizing mature processes over advanced ones. . Nowra, for example, has declared a priority to ship tools for subsequent processes used by Chinese chipmakers.
Additionally, the photoresist materials provider revealed that the current industry focus is on mature processes in hopes of spurring significant advances in mature wafer fabrication technology. At present, the development of cutting-edge processes is not at the forefront of Tianxia’s semiconductor industry challenges.
Tens of millions of chips made on mature process technology are sold each year, but many designs are slowly migrating to more sophisticated nodes. As a result, a significant number of companies have concentrated on mature-process production, and without import and export restrictions on overseas mature-process chips, China’s domestic market could face oversupply, leading to fierce price competition. There are concerns about Chinese foundries will also need to offer discounts to win orders for mature node-based chips with long lifecycles.
But Chinese chip experts believe domestic chip makers should focus on trailing nodes rather than desperately investing in sub-14nm and more advanced manufacturing technologies, despite the risk of oversupply. ing. Focusing on mature processes can make the semiconductor industry more self-sufficient and controllable, reducing its dependence on foreign technology and supplies.
The latest export regulations imposed by the US government are logic chips with non-planar transistors on 14nm/16nm nodes and below, 3D NAND chips with 128 layers and above, and DRAM ICs with half-pitch below 18nm. The Netherlands, Japan and Taiwan will also have similar sanctions coming into effect in mid-2023, meaning China’s SMIC and YMTC will no longer be able to procure the tools to manufacture chips at more or less modern production nodes.
Meanwhile, domestic suppliers of lithography equipment can produce scanners with sufficient resolution for the 90nm-class node, but it is unclear whether they will even be able to produce enough. Therefore, Chinese chip makers will continue to buy tools made by Japanese and Dutch companies. So while China’s chip sector is striving for autonomy, it is likely that it will continue to rely on foreign-made WFEs.
