With the release of Huawei's Kirin 9000S chip, there has been speculation about whether the process used by the chip is 7nm or 5nm. Although it is said that it is close to or has reached 7nm, there is no official news so far. However, SMIC has long revealed that the 7nm R&D task has been completed, and the development of self-developed N1, N2 and other processes has been carried out. In addition, SMIC also revealed that it is undertaking arduous research and development work on the 5nm process. As for the stage of SMIC's advanced technology, ASML has given some answers to this question.
After the signing of the tripartite agreement, ASML is directly restricted to ship the 2000i model lithography machine to SMIC and other companies. These lithography machines are mainly used for processes such as 7nm, but also for 5nm processes, which TSMC has confirmed. Despite this, ASML has publicly stated that the Chinese market is very important to them and will continue to ship to domestic companies. It is worth mentioning that after the launch of Huawei Mate60Pro, ASML announced that it had obtained permission to continue to ship 2000i lithography machines to domestic enterprises. By ASML's insistence on shipping DUV lithography machines to China, it can be inferred that manufacturers such as SMIC are fully capable of using these lithography machines to achieve 7nm or even more advanced processes. In addition, SMIC's Li Nan previously publicly stated that China will soon realize the non-US 7nm full-process process, which further confirmed the breakthrough of 7nm.
SMIC's CEO, Liang Mengsong, has been leading the team to make technological breakthroughs. After the 7nm process was developed, they quickly launched the 5nm process. Although the EUV lithography machine has not yet arrived, ASML insists on shipping the 2000i model lithography machine to domestic enterprises. TSMC has mass-produced the first generation of 7nm chips with these lithography machines and says they can be used in the 5nm process. In addition, unlike other chip giants that cut capital expenditures in 2023, SMIC still maintains a similar level of capital expenditure as in 2022, mainly for factory expansion and advanced process research and development. ASML admits that the self-developed chip semiconductor industry chain of SMIC, Huawei and other companies has undermined the global industrial chain and harmed the interests of the global industrial chain.
ASML's acceleration of the shipment of lithography machines to the Chinese market further confirms the breakthrough and huge demand in the domestic industrial chain. According to ASML, they shipped more than 5 billion euros worth of lithography machines to the Chinese market in two quarters, meeting only 50% of demand. In the third quarter, the Chinese market became the largest contributor to ASML's revenue. The reason why ASML accelerated shipments to China is to gain more market share and revenue, so as not to be monopolized by domestic advanced lithography machines. It is expected that once the domestic advanced lithography machine begins large-scale mass production, the domestic market will be occupied by the domestic lithography machine.
Overall, SMIC has made important breakthroughs in the 7nm and 5nm processes, supported by ASML. ASML has accelerated shipments to the Chinese market, indicating that the domestic industrial chain has made a huge breakthrough and has huge demand. The efforts and breakthroughs of SMIC and other manufacturers are of great significance to the development of China's semiconductor industry, and also bring new challenges and opportunities to the global industrial chain. It is believed that with the advancement of technology and the improvement of innovation capabilities, China's semiconductor industry will continue to catch up and make greater contributions to global scientific and technological development.