The top manager of Huawei openly stated , that due to the US sanctions, Chinese manufacturers still cannot get the equipment to produce the best processors.
Recently, during the Mobile Computility Network conference in Suzhou (China), the CEO of Huawei Cloud Services, Zhang Ping'an, stated that the PRC is unable to purchase and produce 3.5nm chips due to US sanctions. The details were told by Tom's Hardware.
Zhang noted that TSMC, which is based in Taiwan and therefore not subject to US sanctions, continues to ramp up shipments of 3.5nm semiconductors. But because of US sanctions, China has no way to ensure the safety of these products, he said.
The comments reportedly came as a surprise to many in the industry, as China has consistently announced increases in its own semiconductor production. In May, the Chinese government announced the creation of a third fund worth US$47.5 billion to increase investment in the country's semiconductor industry.
Recently, Huawei announced the launch of mass production of 7nm chips without the use of extreme ultraviolet technology ( EUV). Market players have speculated that the manufacturer will soon be able to start mass production of chips using the 5nm process.
However, restrictions imposed by the United States on the shipment of manufacturing equipment and technology to the PRC have hindered the further development of Chinese semiconductor technology. Zhang noted that the production of 3.5nm chips requires EUV technology, which the country does not have.
China is trying to develop the necessary technology on its own, but this is a very difficult task because engineers have to work around patents to succeed. USA and the Netherlands.
Given the difficulties China is facing due to US sanctions, Zhang believes that Huawei and other manufacturers should make more effective use of available technologies. He said: “The reality is that we cannot introduce advanced manufacturing equipment because of the US sanctions, and we need to find ways to effectively use 7nm semiconductors.”
Some companies do find clever ways around the restrictions. For example, Chinese DRAM maker CXMT circumvented US sanctions on sub-18nm equipment by mass-producing 18.5nm DRAM (DRAM, dynamic random access memory — a type of computer memory, which is used to store and transfer data during the operation of programs and operations, — ed.). There is a gray market that allows Chinese firms to buy parts of American equipment through unofficial procurement channels.
If China cannot produce more advanced semiconductors, it will likely try to continue building its share of the legacy semiconductor market. Research firm Trend Force predicts that China's share of the global market will increase from 29% in 2023 to 33% by 2027.