Chinese electronics brands are forced to overpay SMIC for 7nm and 5nm processors. Similar chips from TSMC cost 2 times less with better performance.
Semiconductor manufacturer SMIC has the necessary equipment to create advanced chips using 5-nanometer process technology. According to the Financial Times, these processors will be produced for the sanctioned Huawei brand.
There is information in the media from reliable sources that Ascend 920 computing accelerators will be developed at SMIC in Shanghai, and they are well suited for applications running on artificial intelligence (AI) systems. It is assumed that Ascend 920 will be produced using 5nm process technology.
Sources also said that Chinese electronics brands had to pay almost 2 times (40-50%) more to SMIC for 7nm and 5nm processors compared to the cost of similar semiconductors from Taiwanese manufacturer TSMC. But this is impossible to do without advanced processors because modern smartphones require high computing power. Therefore, Huawei is forced to purchase 7-nanometer HiSilicon Kirin 9000S processors and Ascend 910B computing accelerators for its phones at high prices.
The publication notes that SMIC’s 7 nm and 5 nm semiconductors are inferior to TSMC’s 7 nm and 5 nm chips in some parameters. But China’s desire to bypass US sanctions and not depend on Western technologies is so strong that Chinese companies are willing to pay a lot of money for domestic products of not very high quality.
Important
The media reminded that Huawei shocked the USA and its allies with its new Mate 60 smartphone in 2023, and showed that China could organize the production of 7 nm processors itself, despite the USA’s sanctions in the field of technology and trade. The states did everything possible to prevent China from purchasing lithography equipment to create advanced chips, but the country managed to purchase Dutch equipment as well as create its own installations. Now China is preparing to produce chips using 5 nanometer process technology.
They had previously written that the PRC could access any classified information belonging to the US Army using a special device. Even if the US military switches to civilian technology like Elon Musk’s Starlink, the Chinese will know what messages they are sending.
Source: Focus
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.