China's chip industry responds to US restrictions

Domestically produced wafer fabrication equipment will account for just 11.3% of China's total purchases in 2024, according to data from consulting firm TechInsights.

However, this figure is up from 5.1% in 2020, when the US began restricting exports in the chip sector, prompting China to pour billions of dollars more into domestic chip manufacturing.

China has been the world’s largest buyer of wafer fabrication equipment for the past two years, spending $41 billion on the tools by 2024, accounting for 40% of global sales, according to TechInsights.

ASML of the Netherlands is the world's only manufacturer of the most advanced lithography systems used to create microchips on semiconductor substrates. However, since 2019, the US has blocked ASML from selling extreme ultraviolet (EUV) lithography machines to China.

This forced Chinese companies to import less sophisticated deep ultraviolet (DUV) lithography systems to produce 7nm chips. In 2024, the US also denied China access to ASML’s advanced embedded DUV machines.

SiCarrier, a Chinese chip equipment maker with close ties to Huawei, is making waves with its plans to develop a diverse range of products.

The company is trying to become a one-stop shop for all the tools needed by the domestic semiconductor industry, a sign of how the sector is trying to reduce its dependence on foreign suppliers.

SiCarrier patents show that they are working on DUV lithography systems, but the company has yet to launch a specific product.

A modern semiconductor manufacturing line requires more than 3,000 different tools, including prototyping, processing, and testing. China’s self-sufficiency rate for equipment capable of producing chips at 7nm or below is still below 10%, according to consulting firm IDC.

China's self-sufficiency rate for equipment used in photo-resist removal and cleaning processes has reached 50%, according to Galen Zeng, senior semiconductor analyst at IDC.

Naura and ACM Research Shanghai are among the domestic suppliers of these tools. Naura has the broadest product portfolio, including equipment for deposition (forming thin films on silicon wafers), dry etching, as well as heat treatment and cleaning. Its revenue is expected to reach 29.8 billion yuan ($4.1 billion) in 2024, five times higher than in 2020./.

(Vietnam News Agency/Vietnam+)

Source: https://www.vietnamplus.vn/nganh-chip-trung-quoc-ung-pho-voi-nhung-quy-dinh-han-che-cua-my-post1038500.vnp