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Chinese chipmaker Hua Hong Group readies 7nm process
Hua Hong Group‘s contract arm Huali Microelectronics is readying a 7 nm chipmaking process at a Shanghai plant, Reuters reported.
China’s largest contract chipmaker, SMIC, remains at present the only domestic producer capable of making chips with 7 nm technologies.
Details of the process and production yields remain unclear.
Huali began R&D on 7nm at its Fab 6 last year and has started test production.
Huali plans initial 7 nm capacity of a few thousand wafers per month by year-end and aims to ramp up later, sources said.
Chinese GPU designer Biren is using the 7nm line for tape-out.
🔗 Source: Reuters
🧠 Food for thought
Implications, context, and why it matters.
China’s foundries are already running beyond 100% capacity
- China’s leading foundries are stretched. Hua Hong’s average capacity utilization reached 106.1%, while rival SMIC hit 93.5% 1.
- Heavy local demand is driving a plan to lift advanced output at 7 nm and possibly 5 nm performance levels by five times within one to two years. That would move from under 20,000 wafers to 100,000, based on a Nikkei-cited report summarized by TrendForce (a market-research firm focused on semiconductors) 2.
- Hua Hong Group’s 7 nm work stands out, yet most added capacity targets mature nodes at 28 nm and above. These nodes support automotive chips and power-management semiconductors 3.
- The buildup ties to state-backed consolidation. Hua Hong Semiconductor plans to buy a controlling stake in Shanghai Huali Microelectronics (Hua Hong Group’s contract chipmaking arm), while SMIC seeks subsidiary deals to simplify governance and grow 4.
China’s push to scale up 7 nm production will reshape global supply chains
- Reuters reported that questions remain about how Hua Hong reached 7 nm and which major toolmakers supplied equipment 4.
- The shift could strengthen a local pipeline for U.S.-blacklisted firms such as GPU designer Biren, which lost access to Taiwan Semiconductor Manufacturing Co (TSMC). Those companies could use Chinese 7 nm lines for tape-out (the process of finalizing a chip design for manufacturing), adding demand for domestic output 4.
- TrendForce expects a split market where Chinese foundries focus on local orders, while non-Chinese fabs serve customers with geopolitical or intellectual property concerns 3.
- The biggest ripple may land on mature chips. More Chinese capacity at legacy nodes could push prices down and cut margins for overseas competitors that depend on those nodes 3.
