China's semiconductor sector has seen impressive advancements across various fronts in recent years, largely attributed to strategic government initiatives and incentives. These encompass financial backing, tax benefits, and efforts to attract talent, all of which have played a pivotal role in driving the industry forward. Progress has been evident across the semiconductor production spectrum, including chip design, manufacturing, testing, and packaging.
Notably, China has seen notable strides in chip design, witnessing breakthroughs in specific domains. Products like Huawei's MATE60, featuring the domestically developed Kirin 9000s chip, highlight the industry's ability to produce competitive, state-of-the-art products despite global challenges.
While acknowledging these achievements, it's important to note existing gaps and challenges compared to global leaders in the semiconductor industry. To overcome these hurdles and achieve breakthroughs, strategic focus is required in several key areas.
A significant milestone occurred in December last year when Dutch lithography machine company ASML delivered the world's first 2-nanometer lithography machine to Intel, potentially paving the way for global adoption of 2nm technology.
In contrast, China's mainstream lithography machines typically operate at 28nm and 14nm, with 7nm chips being achieved through multiple exposure techniques. Bridging this technological gap necessitates substantial efforts in advanced process technology, particularly in semiconductor equipment like lithography machines. Proactive government support through increased funding and policies is crucial to foster research and innovation in domestic chip equipment manufacturing.
The quality of materials used in chip manufacturing significantly impacts chip performance and reliability. Chinese semiconductor enterprises lag behind global leaders in both research and manufacturing capabilities, particularly in high-end materials. To address this disparity, China must enhance investment, boost research, and promote technological innovation.
Chip design relies heavily on electronic design automation (EDA) tools and software dominated by industry giants like Synopsys, Cadence, and Siemens. While some domestic companies have made strides in tool coverage, their practicality, maturity, and reliability still trail behind industry leaders. Strengthening collaboration with EDA tool suppliers and advancing domestic tools is essential to elevate China's position in the global chip design industry.
Additionally, the rapid growth of China's domestic chip industry has led to a proliferation of enterprises, many blindly pursuing "domestic substitution." While the integrated circuit design industry progresses toward higher-end applications, the mainstream remains focused on mid- to low-end spectrum. Some companies, driven by market share and expansion goals, may overlook technological innovation and high-end product development, resulting in internal competition within the mid- to low-end chip market. Balancing market expansion with substantial investment in high-end product research and development is crucial for sustainable growth.
In conclusion, China's semiconductor industry has made significant strides, particularly in emerging sectors like the internet of things and automotive electronics, thanks to collaborative efforts between the government and chip enterprises. However, to attain global leadership, Chinese enterprises must increase investments and sustain efforts. As the industry continues to evolve, China is poised to achieve significant technological breakthroughs and expand its market share, promising a bright future with substantial contributions to global technological advancements.