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Chinese Chip Industry to Focus on Perfecting Mature Nodes: Report:

Severe constraints on the development of the Chinese chip industry caused by strict export control rules that block People's Republic chipmakers from obtaining advanced wafer fab equipment (WFE) has triggered local specialists to rethink the nation's semiconductor strategy. While it is obvious that China will have to replace tools made abroad to make leading-edge chips in the long term, for now the country's chipmakers will have to focus on perfecting their mature nodes to stay competitive, reports DigiTimes.

Meanwhile, between 2022 and 2026, Jiwei Research estimates there will be 25 new 300-mm fabs in China, with a total capacity of over 1.6 million wafer starts per month. This could significantly increase China's chip production capacity, which will increase China's total 300-mm capacity to 2.76 million WSPM by 2026.

Without access to advanced equipment, all of these fabs will have to focus on 20nm – 90nm-class technologies, but it will better be able to rely on domestic suppliers. Consequently, companies within the Chinese semiconductor supply chain, spanning from raw materials, machinery, and electronic design automation (EDA), are reportedly shifting their growth strategies, prioritizing mature processes over advanced ones. For instance, Naura has declared that it will prioritize shipments of tools for trailing processes utilized by Chinese chipmakers.

Furthermore, a provider of photoresist materials has disclosed that the current industry emphasis is on mature processes, in the hope of spurring significant advancements in mature wafer production techniques. As of now, the development of cutting-edge processes is not at the forefront of Tianxia's semiconductor industry's agenda.

[...] But Chinese chip specialists believe that despite oversupply risks, domestic chipmakers should concentrate on trailing nodes rather than on desperately investing in sub-14nm and more advanced fabrication technologies. Focusing on mature processes can lead to increased self-sufficiency and controllability of the semiconductor industry, reducing dependence on foreign technology and supplies.

[...] Meanwhile, domestic suppliers of lithography tools can make scanners with enough resolution for a 90nm-class node and it is even unclear whether they can make them in sufficient quantities. Therefore, Chinese chipmakers will keep buying tools produced by companies from Japan and the Netherlands. So while China's chip sector is striving for autonomy, it will likely keep relying on WFE made abroad.

Related: China's Phone Giant Oppo Disbands Chip Design Unit as Shipment Slumps

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