China Seeks Chip Production Independence Amid Sanctions

China to Present Breakthrough 28-nanometer Lithographic Machine

Beijing, China – In a bid for technological self-sufficiency amidst escalating export sanctions by the United States, China plans to unveil its own 28-nanometer lithographic machine by the end of this year.

Just yesterday, it was reported that China has been circumventing American restrictions by ramping up the production of outdated chips. While these sanctions do not apply to such chips, the large increase in production raised concerns in the United States and the European Union. They fear that China will flood the market with cheap chips, which are still in demand in various industries.

However, this increase in production of outdated chips is only a temporary measure as China is focused on achieving its independence in chip technology. Rumors about the forthcoming release of Shanghai Micro Electronics Equipment’s (SMEE) immersion deep ultraviolet lithographic machine based on 28 Nm were circulating since 2020. Nonetheless, the conditions for a rapid transition to the modern process have only recently matured.

Presently, China partially relies on advanced ultraviolet lithographs by Dutch company ASML. However, the supply of these lithographs to companies like TSMC, Samsung, and Intel has been halted.

The future supply of advanced lithographs from ASML is uncertain. From September 1, the Netherlands may require an export license, which could pose a problem for China.

In July of this year, Japan limited the export of 23 types of chips and equipment. These actions were coordinated with the United States, which tightened control over the supply of Lam Research and Applied Materials in October.

Furthermore, China also faces the risk of losing access to ASML’s older Deep Ultraviolet (DUV) lithographs. Media reports suggest that the United States is preparing regulations to prohibit the shipment of foreign equipment with a small percentage of American components.

Zhang Xiaurun from the SHENDU TECHNOLOGY research institute expresses concern that these measures will greatly impact Chinese suppliers, as the country is only partially self-sufficient in modern processes. The domestic lithographic projects are trailing Western counterparts by as much as 10 years.

SMEE, despite being able to mass produce lithographs with an outdated resolution of 90 nm suitable for the production of simple chips, heavily relies on imported materials.

Given

/Reports, release notes, official announcements.