Chinese chip production is at a new peak

China has greatly increased its domestic chip production volume, according to From an article in the South China Morning Post. The paper provided data from the industry citing government sources. Based on this, nearly 30 billion chips were produced in China in May alone, an increase of 37.6 percent from the same month last year. Production was at a similar level in previous months: 29.1 billion chips were produced in March and 28.7 billion in April. At the same time, China produced a total of 139.9 billion different semiconductors this year, a 48.3 percent jump from the first five months of 2020.

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Although the growth is significant, the vast majority of this is due to foreign companies. There are several major chip makers in China, led by key players such as Samsung, SK Hynix or Intel. The three companies in question mainly produce various memories, DRAMs and / or NAND chips in Chinese plants.

In parallel, domestic producers are also trying to increase their production. Of these, SMIC (Semiconductor Manufacturing International Corp) is the largest player. However, the manufacturer is lagging far behind in technology, as its most advanced process is currently 14 nanometers with a bandwidth of up to 55,000 wafer per month at its plants in Beijing and Shanghai. The company is therefore building a new plant with a capacity of up to 70,000 wafer per month for its 14-nanometer and more advanced technologies, for about $ 10 billion. However, this is not expected to be completed before the end of this year, so SMIC is currently forced to produce 14-nanometer chips, partly at the expense of older processes.

The long-cherished goal of the leadership of the Far Eastern country is to increase the proportion of semiconductor care within its borders to 70 percent by 2025. According to a report from the Chinese organization SEMI (Semiconductor Equipment and Materials International) a few years ago, the country imports a total of roughly $ 250-300 billion worth of various semiconductors a year, an amount that exceeds the value of China’s crude oil imports. According to the latest data, China was forced to import 260 billion chips in the first five months of 2021, a 30 percent increase over the same period last year.


Source: HWSW Informatikai Hírmagazin by www.hwsw.hu.

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