Due to the ongoing chip shortage impacting the overall semiconductor market and the continuing U.S. and Chinese geopolitical tensions, China is seeking to accelerate the production of 28 nm and 14 nm semiconductors.
According to Developing Telecoms, the increase in Chinese chip production is the result of rapid development of China’s IC market in terms of both technology and industrial policy, which is closing the gap between China’s manufacturing processes and those of leading firms in Taiwan, Korea and the U.S.
This development of ICs will help China to surpass other markets in the coming decade, Developing Telecoms said.
Some of the progress that has been made in China over the past two years include Semiconductor Manufacturing International Corp. (SMIC) manufacturing 5G millimeter wave (mmWave) chips as well as its successful tape out of the N+1 process.
Developing Telecoms said SMIC may potentially be already capable of producing 14 nm and 28 nm chips.
Additionally, the company said production capacity of chip manufacturers in China on 28 nm semiconductors has already been fully utilized, reaching at least 98%, making this the year with the highest capacity utilization rate over the past five years. This will pave the way for increased production of 14 nm chips, which Developing Telecoms expects China to begin mass producing next year.
