Expanding China's chipmaking capabilities with tens of billions in funding, yet falling over a decade behind the market frontrunners - Explanation provided
==============================================================================
China's semiconductor industry is making strides, but a critical challenge lies in the realm of lithography technology. For the next decade at least, China will have to rely on advanced lithography tools made in Europe or Japan for 7nm or 5nm-class technologies, as domestic companies struggle to catch up with global leaders.
The Dutch company ASML, a frontrunner in the lithography field, has 5nm-capable immersion DUV machines, demonstrating the immense capability of this technology. However, Chinese companies do not have access to Zeiss's optics used in ASML's advanced tools, which poses a significant barrier.
One of the rising stars in China's semiconductor equipment landscape is SiCarrier, believed to be developing a full stack of wafer fab equipment from deposition and lithography all the way to annealing and inspection. While SiCarrier has made strides in lithography, they are still behind global leaders like ASML.
Immersion DUV lithography tools are incredibly difficult to design due to the need for high numerical aperture lenses made from ultra-pure calcium fluoride and precision control over fluid dynamics and thermal stability. The main obstacles for China in developing its own lithography machines for 7nm and 5nm semiconductor manufacturing are the extreme technical complexity, lack of access to advanced EUV (extreme ultraviolet) lithography technology due to export restrictions, and the need for highly specialized materials, optics, and software.
China-based chipmakers rely on electronic design automation (EDA) and simulation software for chip design, as well as production tools made in Europe, Japan, and the U.S. In an effort to reduce this dependency, the goal of the $50-billion Big Fund III was expanded this year to include EDA and simulation tools.
SMEE, China's most advanced maker of litho tools, is significantly behind global leaders like ASML or Nikon. SMEE has developed lithography systems capable of producing chips on a 28nm-class process technologies, including immersion DUV scanners. However, moving to 16nm or 7nm is not a linear progression for SMEE, requiring entirely new classes of technology, control, and precision, with exponentially higher complexity and capital intensity.
Lithography remains the most critical choke point for the People's Republic. Mechanical components in immersion DUV scanners must move at high speed with sub-nanometer accuracy using air bearings or magnetic levitation and have feedback systems that operate at microsecond latency to correct any drift or vibration. Software and sensors in these scanners must act with a nanometer overlay error to ensure alignment and pattern accuracy.
Replicating ASML's software and firmware is as challenging as assembling a high-precision machine. SiCarrier's lithography developments may be kept secret from the U.S. government, as they heavily rely on components made outside of China.
Despite these challenges, China has made strides in other areas of semiconductor manufacturing. Chinese companies have strong local offerings in etching, deposition, cleaning, CMP, and coating/developing, especially for mature and legacy process technologies. Domestically manufactured equipment accounts for 15% to 30% of the total tools deployed in Chinese semiconductor fabs.
As China continues to invest in its semiconductor industry, overcoming the challenges in lithography technology will be crucial for the country to compete on a global scale.
Read also:
- Peptide YY (PYY): Exploring its Role in Appetite Suppression, Intestinal Health, and Cognitive Links
- Toddler Health: Rotavirus Signs, Origins, and Potential Complications
- Digestive issues and heart discomfort: Root causes and associated health conditions
- House Infernos: Deadly Hazards Surpassing the Flames
