Chinese Chipmakers Set to Achieve 14 nm Breakthrough in 2022! China Unveils Its First 7nm Chip!

SMIC sees an opportunity to focus on these mature silicon processes, which can increase production and thus have a greater impact on its bottom line. In fact, Zhao Haijun, co-CEO of the company, once said that based on the positive feedback from customers on its 14nm process capability, SMIC has decided to increase its expenditure by $1.1 billion to $4.3 billion to meet the demand for chips in communication and automotive applications. We expect that by 2022, China will be completely self-reliant in 14nm technology.

Elsewhere in China’s semiconductor industry, registrations of new homegrown semiconductor companies have tripled since early 2021, potentially creating a healthy domestic market for chip-making services such as SMIC, the South China Morning Post reported.

China’s semiconductor industry is largely driven by the government, which is pushing China to become self-sufficient in silicon production that year. This goal has suffered a great setback due to US sanctions restricting US technology exports to Chinese companies, but we believe that Chinese industries still have the ability to produce chipsets based on more mature process nodes.