Chinese semiconductor industry
- Thread starter Hendrik_2000
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broadsword
Brigadier
It's safe to say what motivates him is not just monetary reward alone.
Yes, correct bro, Morris Chang is a household name for now BUT his name will fade while Liang Mong Song will be elevated to Hero status with a grateful 1.4 billion plus Chinese. He will be consigned in History as one of many fathers of Chinese IC even though the purpose of going to SMIC is personal like he want to prove himself against his peers in TSMC.
Sir not only in Leading edge nodes BUT commodity chip as well. The wisdom of DUAL Approach strategy is to fasten SMIC tech advancement as the competition heats up with outside forces intervention. The goal is to hold the fort , sharpen the skills and be at least a striking distance until the expected EUVL arrived in 2025, until then ASML will play a crucial role and of SMEE improve DUVL iteration.
From Tom's Hardware
TSMC Says a Shortage of Commodity Chips Is Disrupting Trillion-Dollar Industries
By published about 6 hours agoIf you don't have a $10 chip, you can't ship a $150 million lithography scanner.
(Image credit: Arm)
Modern machinery uses loads of chips to enable their advanced functionality. There is nothing surprising here as almost all kinds of devices use electronics components nowadays, particularly logic chips. But there is a problem, as the lack of commodity chips that cost dollars or even pennies can disrupt shipment of a $50,000 car or a $150 million lithography scanner.
The global automotive manufacturing industry received $2.86 trillion in revenue in 2021, according to . Every car uses hundreds of chips these days and that number is set to grow to over 1,500 in the coming years as vehicles become autonomous. But that means that the growing auto industry will depend on chip supply and the semiconductor industry even more than it does today, which is why they have to take chip supply more seriously than ever.
Car makers are not the only manufacturers to suffer from chip undersupply. Even ASML, which is the world's largest maker of lithography scanners — which are used to make chips — has suffered from chip shortages.
"When carmakers told me previously that they were short of semiconductors, I thought, 'How come these guys couldn't understand the importance of chips,'" said CC Wei, chief executive of TSMC, at an event in China, reports . "But later, TSMC's own equipment suppliers suffered delivery problems and told me it is also due to component and chip shortages."
The market of semiconductor manufacturing tools is also huge and multifaceted. If TSMC cannot get an ASML extreme ultraviolet (EUV) lithography scanner or an Applied Materials deposition tool on time, its huge $20+ billion fab will stand idle. Ultimately, other suppliers of fab tools as well as TSMC's customers will suffer, so supply chain management will get even more crucial tomorrow than it is today.
Snowballing demand for semiconductors will ultimately lead to an increase in their prices in general, as companies like TSMC have to build new production capacity. As a result, prices of actual goods will increase as well. Meanwhile, since logistics is getting more complicated, this will affect pricing too. All-in-all, electronics is going to get more sophisticated, but also more expensive in the coming years, the executive of TSMC warned.
"The age of an efficient, globalized supply system has passed," said Wei, reports . "Costs are swiftly rising, including inflation."
We need to find a way to finance that.
Just imagine what smic can do with Chinese EUV machines. They can already do this much with DUV machines. The world needs smic products, but the US is holding back consumers of the world.
Bro Innovation is a product of necessity, IF there is NO restriction then SMIC will just adopt what TSMC is doing in EUVL as they are the early movers and have close ties with ASML. With the restriction SMIC is force to innovate by cooperating with ASML on the DUVL front, the 7nm N+2 is one of the outcome the other is the much speculate 5nm N+3. Those experience will be transmitted to SMEE as they work together on the 28nm ,14nm and maybe the 7nm domestic line together with Huawei. So their DUAL Approach Strategy is working and ASML knows that it might end in 2025 if China do deliver its EUVL and IF it does with the goodwill gain from their excellent working relationship , ASML might sell its EUVL citing disposition inutile et obsolète and continue the strategy.
Huawei is buying up DUV machines from smic.
By that time, there is no need to buy EUV from asml. China will export its EUV machines.
They have to ramp up production first which is difficult unlike that of ASML with years of experience and China will welcome ASML participation, competition is good and also SMEE will benefit as they have a reference point for comparison. And its on SMIC best interest to have multiple suppliers as an alternative rather than dealing with a monopoly.
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