Global Times reports today that a Chinese firm will be able to produce a 28-nanometer (nm) lithography machine by the year-end, “representing a great leapfrog for the nation’s chip industry after years of U.S.-led suppression and containment.” The current chip-manufacturing capacity in China is only capable of 90-nm node standard—a technology that is suitable only for low-end chips.
Shanghai Micro Electronics Equipment Group (SMEE), China’s leading producer of the chip-production machines, accounts for about 80% of the domestic market in chips, while the more advanced chips are imported. The Global Times article notes that Japan and the Netherlands, two of the leading producers of the more advanced chips, have conceded to the U.S. pressure to deny sales of their advanced chip manufacturing lithography machines to China. They report: “Japan announced in late March a draft revision to a ministry ordinance on its Foreign Exchange and Foreign Trade Act, adding 23 chip-manufacturing items that would require government approval to be exported. The rule took effect on July 23. The Dutch government announced a ministerial order in early July to restrict exports of certain advanced semiconductor equipment. The export controls will come into effect on September 1.”
