An analysis of China’s current semiconductor technology revealed that the country is approaching a level three years behind industry leader Taiwan Semiconductor Manufacturing Company (TSMC), showing the limitations of US efforts to stem Beijing’s development of cutting-edge chips.
Hiroharu Shimizu, CEO of Tokyo-based TechanaLye, a semiconductor research company that disassembles 100 electronic devices a year, told Nikkei about China’s capabilities.
Shimizu showed semiconductor circuit diagrams for two application processors, the brains of a smartphone: one from Huawei Technologies’ Pura 70 Pro, released in April, and one from a top-of-the-line Huawei smartphone from 2021.
The Kirin 9010—the newest phone’s chip—was designed by Huawei subsidiary HiSilicon and mass produced by major Chinese contract chipmaker Semiconductor Manufacturing International Corporation (SMIC). The 2021 phone’s Kirin 9000 chip was also designed by HiSilicon, but mass produced by TSMC.
SMIC, which is subject to US measures to suppress advanced chip technology, is capable of producing 7-nanometer chips. TSMC supplied 5-nm processors to Huawei for the 2021 phone.
Generally, the smaller the nanometer size, the higher the performance and the smaller the chip. However, SMIC’s 7-nm mass produced chip measures 118.4 square millimeters, while TSMC’s 5-nm chip is 107.8 square millimeters. The two chips have similar areas and performance levels.
Although a difference in yield still exists, SMIC’s capabilities are approaching a level three years behind TSMC, based purely on performance of the chips that were shipped. HiSilicon’s design capabilities have also improved, as shown by its ability to produce chips with comparable performance as TSMC’s 5-nm products, despite their wider circuit width.
Huawei’s Pura 70 Pro is equipped with a total of 37 semiconductors that support memory, sensors, cameras, power supply, and display functions. Of these, 14 were from HiSilicon, 18 from other Chinese manufacturers, and just five from foreign manufacturers, including South Korea’s SK Hynix for DRAM and Germany’s Bosch for motion sensors. Some 86% of the phone’s chips were made in China.
“In effect, the only semiconductors subject to the US regulations are cutting-edge server chips for artificial intelligence and other applications,” Shimizu said. “As long as the chips do not pose a military threat, the US is probably allowing their development.”
Chinese players made 34.4% of global chipmaking equipment purchases in 2023, roughly double the figure for South Korea and Taiwan, according to industry group SEMI. The country is expanding its mass production capabilities by focusing on equipment that is not targeted by export restrictions on cutting-edge technologies.
Given this trend, the fact that SMIC’s 7-nm chips now rival TSMC’s 5-nm chips in processing capability could have major implications for the industry. TSMC also faces growing hurdles to stay ahead of Chinese rivals technologically as miniaturizing circuits becomes increasingly difficult.
“The U.S. regulations so far have only slightly delayed Chinese innovation, while sparking efforts by the Chinese chip industry to boost domestic production,” Shimizu said.