The U.S. has implemented strict measures to limit China’s progress in semiconductor technology. However, a recent analysis reveals that China’s chip development is still advancing, just three years behind industry leader Taiwan Semiconductor Manufacturing Co. (TSMC). The study underscores the complexity of controlling technological advancements in the global semiconductor industry.
TSMC’s lead over China’s semiconductor industry
Taiwan’s TSMC remains the industry leader, with its cutting-edge chip technology still outpacing China. According to research by Tokyo-based semiconductor analyst Hiroharu Shimizu, China’s Semiconductor Manufacturing International Corp. (SMIC) is producing 7-nanometer chips, a significant achievement. These chips are just three years behind TSMC’s 5-nanometer technology.
The analysis was conducted by TechanaLye, a firm specializing in semiconductor research. Shimizu’s team disassembled over 100 electronic devices to compare semiconductor performance. The comparison focused on chips used in Huawei’s latest smartphone, the Pura 70 Pro, which features SMIC’s 7-nanometer chip. In contrast, a 2021 Huawei smartphone used a 5-nanometer chip supplied by TSMC.
The U.S.-China chips TSMC competition has become a central issue in global technology. While SMIC’s 7-nanometer chips are close in performance to TSMC’s 5-nanometer chips, the difference in nanometer size is crucial. Generally, smaller nanometer chips are more advanced, offering higher performance in a smaller area. TSMC’s 5-nanometer chip measures 107.8 square millimeters, while SMIC’s 7-nanometer chip is slightly larger at 118.4 square millimeters.
The growing capabilities of China’s chip industry are significant, particularly given the U.S. sanctions. The restrictions aim to prevent China from developing cutting-edge semiconductor technology, which could have military applications. However, the analysis shows that while the sanctions have slowed China’s progress, they have not stopped it entirely.
Implications for the global industry
The U.S.-China chips TSMC rivalry has broader implications for the global semiconductor industry. China’s focus on increasing domestic production is evident, with Chinese manufacturers now supplying 86% of the chips used in Huawei’s Pura 70 Pro. This shift highlights China’s growing self-reliance in semiconductor manufacturing, despite the challenges posed by U.S. export restrictions.
The U.S. has targeted China’s semiconductor industry with sanctions restricting access to advanced manufacturing equipment and materials. However, Chinese manufacturers are finding ways to bypass these restrictions by focusing on technologies not covered by the sanctions.
As a result, China’s chipmaking capabilities continue to grow, even if they remain behind TSMC’s cutting-edge technology.
Challenges for TSMC
While TSMC maintains its leadership, the challenge of staying ahead is growing. The semiconductor industry is reaching physical limits on how small circuits can be miniaturized. As SMIC narrows the gap, TSMC faces increasing pressure to innovate and maintain its technological edge. The U.S.-China chips TSMC competition will likely intensify as China invests in its semiconductor industry.
According to Nikkei Asia, Chinese companies accounted for 34.4% of global chipmaking equipment purchases in 2023. This investment is fueling China’s semiconductor production capabilities, enabling it to close the gap with industry leaders like TSMC. Despite the U.S. sanctions, China’s chip industry is expanding, signaling a potential shift in the global semiconductor landscape.
The ongoing U.S.-China chips TSMC rivalry illustrates the complexities of the global semiconductor industry. While U.S. sanctions have slowed China’s progress, they have not been entirely effective in halting it. As China continues to develop its chipmaking capabilities, TSMC faces growing competition. The coming years will determine whether TSMC can maintain its lead or if China’s semiconductor industry will catch up.
2024-09-03 15:05:36