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China’s Semiconductor Progress Defies US Restrictions

BusinessChina's Semiconductor Progress Defies US Restrictions

Despite intense geopolitical pressures and trade restrictions from the US, Chinese tech giants like Semiconductor Manufacturing International Corp (SMIC) and Huawei Technologies are making undeniable strides in the realm of chip technology. The resilience of these companies and their advancements stand as a testament to China’s burgeoning semiconductor prowess.

Huawei recently showcased its capability with the introduction of a 7-nm processor made by SMIC for its Mate 60 Pro smartphone. This development not only sparked jubilation in China but also brought forth allegations from the US. The accusation suggested that the US’s endeavours to halt China’s tech progression had not borne fruit. Alongside, Yangtze Memory Technologies Co has emerged at the forefront of the memory chip sector, producing some of the most sophisticated memory chips.

Burn J. Lin, previously the vice-president at Taiwan Semiconductor Manufacturing Co (TSMC) and a respected figure in the chip-making industry, opined that the efforts by the US to stymie China’s advancements in chip technology might be in vain. SMIC, with machinery from ASML Holding NV already in its arsenal, could potentially evolve to the next-generation 5-nanometer technology. Lin’s credentials, particularly his pioneering proposal of immersion lithography, lend significant weight to his assertions.

During a recent interview at National Tsing Hua University, Hsinchu, Lin remarked, “It is just not feasible for the US to entirely halt China’s enhancement in chip technology.” Lin emphasized the futility of such efforts, especially considering China’s holistic national approach to augment its semiconductor sector. He suggested that the US would benefit more by concentrating on preserving its chip design supremacy.

Interestingly, Lin pointed out that the US’s restrictions might have inadvertently played to China’s advantage. In 2020, the US proscribed TSMC, a leading silicon supplier to global giants like Apple and Nvidia, from associating with Huawei. This void was promptly filled by SMIC, leveraging the substantial orders to refine its manufacturing methodologies.

Current debates in the international arena revolve around the future stance of the US and its allies concerning Chinese technological advances. The US has voiced concerns over the potential military applications of advanced chip technologies by China. Industry observers predict Huawei’s potential to produce nearly 70 million smartphones equipped with its Kirin chips by 2024, a significant volume in comparison to Apple’s annual iPhone shipments.

Furthermore, China’s rapid developments in memory chips, essential components in various tech products, have added to the US’s apprehensions. Canadian research outfit TechInsights recently identified a high-grade chip produced by Yangtze Memory, highlighting China’s relentless progress in the semiconductor sector despite the constraints posed by international sanctions.

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