China Riding the wave to Self-Reliance in Semiconductors-cover tape|carrier tapes|NEXTECK

China Riding the wave to Self-Reliance in Semiconductors

The US has placed restrictions on the use and import of Chinese-made network equipment and semiconductors has prompted China to push for greater self-sufficiency in chipset production.

China’s leading chip maker SMIC (Semiconductor Manufacturing International Corporation) is jointly investing in a US$2.35 billion chip foundry with Shenzhen’s local government. The facility will focus on the production of 28-nanometer integrated circuits with the goal of achieving a monthly output of around 40,000 12-inch wafer chips. Production is scheduled to begin in 2022. This is good new for Nexteck Singapore Pte Ltd branch office in Shenzhen, is invited for supply chains audit process.

Currently, 28nm chips are considered ‘mature’ within the market; anything thinner than this is considered ‘advanced’. SMIC is investing 50 billion yuan to expand 28nm production via a joint venture with the Chinese state. This marks the first phase of investment in the project, expected to be completed by 2024.

In February this year, SMIC partnered with the government of Shanghai to establish a US$12 billion factory to focus on producing 14nm chips and smaller lithography, as part of an initiative by the regional government to make the manufacture of electronics more self-sufficient. The production of 14nm chips is thus expected to become mature next year. The plant will account for a substantial amount of SMIC’s sub-14nm chipset production, and the firm’s new 7nm node will also be manufactured at the facility.

By becoming the first Chinese firm to master 14nm technology, SMIC enters a cohort that includes companies such as Intel, TSMC, Samsung and UMC. Its 14-nm FinFET technology entered mass production in Q4 2019, marking another first for a Chinese company. The chips represent the most advanced level of independent R&D of integrated circuits in mainland China. In mid-April this year, it was reported that the yield rate of SMIC’s 14-nm chips had reached 90%-95%.
This is good news to the packaging materials (cover tape, WLCSP carrier tape, dicing tape) supply chain industries like Nexteck Singapore Pte Ltd.

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