China’s Semiconductor Manufacturing International Co. (SMIC) reportedly produces 5 nanometer chips for Huawei, defying U.S. sanctions.
However, challenges include higher production costs and lower yields due to the use of older equipment.
1. SMIC, China’s major chipmaker, reportedly defies U.S. sanctions by producing 5 nanometer chips for Huawei.
2. U.S. sanctions aim to limit China’s access to advanced chipmaking technology and tools.
3. SMIC’s use of older equipment raises production costs and lowers chip yields compared to global competitors like TSMC.
4. Challenges persist in maintaining competitiveness without access to cutting-edge technology, like ASML’s EUV lithography machines.
5. China faces the need for substantial investments to address cost and yield issues in advancing chip generations.
