China's sophistication in some of its chip technology is nearing three years behind that of top chip manufacturer Taiwan Semiconductor Mfg. Co. (TSMC), according to recent analysis by TechanaLye.
The Tokyo-based company found a processor from a new Huawei smartphone released in April rivals TSMC chips in processing capability, highlighting China's efforts to bridge the gap despite US trade restrictions.
US Trade Restrictions Failing in Intent?
The findings demonstrate that despite the Biden administration's ban on exporting certain chip technology to China, the nation continues to evolve its processor technology, buoyed by a surge of activity by in-country manufacturers.
TechanaLye CEO Hiroharu Shimizu noted that US regulations have only slightly delayed Chinese innovation, while sparking efforts by the Chinese chip industry to boost domestic production.
Further Advancement Would Cause a Ripple Effect
If China were to catch up with TSMC and other top manufacturers in its development of processors, it would represent a significant shift in the global semiconductor landscape, according to Akshat Vaid, partner at Everest Group.
This likely would cause a ripple effect on global competition, geopolitics, technology, and economics, diversifying the semiconductor supply chain and reducing reliance on a few vendors.
China's Advancements Spark Concerns
China's advancement in the space also could tip the geopolitical balance in technology and trade, creating even more competition and conflict between China and Western nations.
This ultimately could spur disruptive changes in semiconductor supply-chain strategies and new policies to support domestic semiconductor industries or regulate technology transfer, security, and trade concerns.
TSMC's 5-nm Chip Outperforms SMIC's 7-nm Chip
Analysis by TechanaLye found that TSMC's Kirin 9000 chip outperformed SMIC's Kirin 9010 chip, despite the latter being mass-produced using a more advanced 7-nanometer process.
The difference in yield still exists between the two chips, highlighting the challenges faced by Chinese manufacturers in achieving parity with top-tier suppliers like TSMC.
US Export Controls Have Limited Impact
Last October, the Biden administration issued new export controls that block US companies from selling advanced semiconductors and equipment to certain Chinese manufacturers unless they receive a special license.
The results of TechanaLye's analysis show that US restrictions may only affect cutting-edge processors for servers aimed at advancing technologies such as artificial intelligence (AI), not trickle down to technology like smartphones.