Recently, the manufacturing process of the Kirin 9000s chip has been the focus of attention from the outside world. Is it 7 nm or 5 nm?Although SMIC has already completed the research and development task of 7nm and also launched new N1 and N2 processes, the official did not disclose specific information. However, a series of moves by ASML provide the answer. Under the restrictions following the tripartite agreement, ASML continues to ship domestically, including lithography machines for 7nm and 5nm processes. This also proves that SMIC and other manufacturers can already use advanced process technology to produce chips, even up to the process level of 7nm or more. In addition, Li Nan's public statement that China will soon realize the whole process of non-American 7nm, which once again confirms the breakthrough of the 7nm process. SMIC is actively making technological breakthroughs, having completed 7nm R&D and 5nm work. Although the EUV lithography machine has not yet arrived, ASML still ships mainstream DUV lithography machines to China, which means that manufacturers such as SMIC can make full use of these equipment for production, so that the chip manufacturing process can reach the level of 7nm or even more advanced.
SMIC has been working hard to break through the technical difficulties of the chip manufacturing process. They have successfully completed the R&D task of 7nm, and have also developed their own processes such as N1 and N2. These processes are similar to TSMC's 7nm process in terms of logic machines. In addition, SMIC has already begun work on 5nm. Although the EUV lithography machine has not yet arrived, ASML continues to ship DUV lithography machines to SMIC and other manufacturers, providing them with the possibility of process production. The launch of the Huawei Mate60Pro further confirms this, and ASML has obtained the authorization to continue to ship 2000i and other models of lithography machines to China. This shows that manufacturers such as SMIC can fully use these devices and make the chip manufacturing process reach more than 7nm, or even more advanced process level.
As SMIC and other manufacturers continue to increase their ability to break through chip manufacturing processes, it is inevitable for ASML to accelerate shipments to the Chinese market. ASML has publicly stated that the Chinese market is of great importance to them and will continue to supply domestic lithography machines. In fact, ASML has shipped more than €5 billion worth of lithography machines to the domestic market for two consecutive quarters, and says that current shipments are only 50% of market demand. In particular, the domestic market became the largest contributor to ASML's revenue in the third quarter, which is further proof that the domestic industrial chain has made breakthroughs. ASML is accelerating shipments to the domestic market mainly to gain more market share and revenue, so as to prevent the domestic market from being dominated by domestic equipment once the domestic advanced lithography machine is mass-produced.
In 2023, the global chip giants are cutting capital expenditures, and only SMIC has maintained a level comparable to that of 2022. This shows that SMIC attaches great importance to the expansion of factory production and the research and development of advanced processes. ASML also acknowledged the important role of companies such as SMIC and Huawei in independently developing chips and semiconductor industry chains, and pointed out that such actions undermine the global industry chain and cause damage to the interests of the global industry chain.
Judging from ASML's move to accelerate domestic shipments, the domestic industrial chain has made a major breakthrough, and the market demand is huge. SMIC and other companies have completed the R&D task of 7nm and started the work of 5nm by breaking through the technical difficulties of the chip manufacturing process. ASML continues to provide the best lithography machines in China to meet market demand and gain more market share and revenue. SMIC's steady capital expenditure further demonstrates its commitment to factory expansion and advanced process development. Looking back on the development of the entire industrial chain, China's chip manufacturing process has made breakthrough progress, with higher autonomy, controllability and competitiveness.
Based on the above summary, we can conclude that SMIC has made significant breakthroughs in 7nm and 5nm processes, and has received support and recognition from ASML. With the development of the domestic industrial chain, China's chip manufacturing industry will enjoy a larger market share and competitive advantage. The continuous efforts of SMIC and other companies in technology research and development and capital investment will also further strengthen the strength of the domestic chip industry. It is believed that in the near future, China will become an important force in the global chip manufacturing industry.