This leaves Chinese manufacturers relying on older deep ultraviolet (DUV) machines. While still capable of producing advanced chips, they are not on par with their EUV counterparts.
Despite these limitations, China has showcased progress with SMIC releasing a 7-nanometer chip in 2023, and Huawei reportedly developing a groundbreaking 3-nanometer chip. If successful, this would put them at the forefront of chip technology.
The US Advantage
While the US has ceded ground to industry leaders like Taiwan and South Korea in terms of chip production, it retains its crown as the global leader in chip design and innovation.
American chipmakers, unlike their Chinese counterparts, have unrestricted access to cutting-edge lithography equipment. Industry giants like Intel are reportedly on track to launch a revolutionary 1-nanometer chip as early as 2027.
However, China’s recent $47.5 billion injection into its semiconductor industry highlights its unwavering commitment to self-sufficiency. Some experts even suggest that US actions are inadvertently pushing China towards accelerated innovation and domestic chip production. China also holds a dominant position in critical mineral resources, which are essential for chip production.
