China’s In-House Chips Are Said To Be Just Three Years Behind TSMC, US Curbs Show Little Impact

China's domestic chips have evolved rapidly, and a new analysis shows that the country is only three years behind TSMC in achieving semiconductor equivalence.

It won't be wrong to admit that after the US sanctions, the growth experienced by Chinese semiconductor firms was at a new level, especially since the "Made in China" narrative took a new turn, involving every giant firm to ensure that they achieve self-production lines. A great example of this is Huawei. Even after the US made every attempt to hinder China's influence over the global markets, the nation kept coming back, and it looks like the domestic semiconductor markets have now evolved to the extent that they are "almost" on par with global competitors.

In a report by Nikkei Asia, citing Hiroharu Shimizu, CEO of TechanaLye, a Tokyo semiconductor research company, has stacked up two different pieces of chips, one from the Taiwan giant TSMC and the other from China's main semiconductor firm SMIC. Shimizu has shown us the differences between Huawei's Kirin 9010 SoC, which SMIC mass-produced, and Huawei's Kirin 9000 SoC, which had semiconductors from TSMC.

When comparing the performances between the two chips, it is said that SMIC isn't too far from achieving a head-to-head competition with TSMC. Along with that, the Kirin 9010 chip was built upon SMIC's 7nm process, and the Kirin 9000 utilized TSMC's 5nm. Still, despite the difference in node size, SMIC managed to close down the performance gap by having a more efficient chip design, in collaboration with HiSilcion, a Huawei subsidiary. It's safe to say that SMIC managed to rival TSMC despite having an inferior process and equipment.

The Chinese semiconductor industry continues to push itself to the next level, as it is said that Chinese firms made more than 34.4% of global chipmaking equipment in 2023, double what the likes of South Korea and Taiwan acquired. China is expanding its mass-production capabilities as well, which is why, in a recent statement by ASML's CEO, it was claimed that China's "legacy chips" are important for the world, especially Europe, given that China has facilities that can cater to the massive demand.

Rumors are swirling around that SMIC has achieved a breakthrough in its 5nm process without DUV equipment, but there are still yield rates and high-price concerns. While SMIC still has a long way to go to reach the likes of TSMC in market competitiveness, the way Chinese markets are growing, we aren't too far from the time when China achieves a status equivalent to that of Taiwan in the semiconductor world, but there are still complications present.