Huawei and SMIC took the U.S. by surprise when they unveiled the 7nm Kirin 9000S, which industry experts claim is a technological breakthrough because of all the trade sanctions in place. However, it is no secret that China’s largest semiconductor firm cannot match the capacity output of TSMC and Samsung. It also relies on older-generation machinery for wafer manufacturing, which is a barrier it has yet to scale. Looking at the obstacles still in Huawei’s and SMIC’s path, the U.S. believes that its trade sanctions are working as intended and that 7nm demand cannot be fulfilled.
Huawei’s Kirin 9000S is similar to the older Kirin 9000 but delivers less performance due to a lack of advanced machinery and other tools
Despite the unyielding efforts of both Huawei and SMIC, U.S. officials believe that they are unable to match the performance or the yields. As reported by Bloomberg, Thea Kendler, who is the assistant secretary for export administration, stated the following during a testimony before a House Foreign Affairs Committee oversight panel.
“Neither the performance nor yields may match the market of the device. Moreover, the semiconductor chip that is inside that phone is a poorer performance than what they had years ago. So our export controls are meaningful in slowing China's advanced technology acquisition.”
The Kirin 9000S might be a product of a local foundry, but its performance pales in comparison to the competition. Even if the performance of the SoC somehow matched that of the Snapdragon 8 Gen 3, the Dimensity 9300, or even Apple’s A17 Pro, it will hardly make a difference if SMIC cannot produce enough of them. However, even with SMIC’s yield issues, Huawei has been estimated to ship around 100 million smartphones next year, so what the current report states is entirely different compared to the earliest forecast.
Huawei and SMIC had also announced a 5nm chipset, so even with those yield problems, both Chinese entities appear to be progressing forward, albeit at a slower pace, thanks to the sanctions. The Chinese government has also been reported to be giving billions in subsidies to SMIC to offset its losses caused by the lack of yields, but it is still expected to take several years for the manufacturer to obtain complete autonomy in developing next-generation nodes.
News Source: Bloomberg
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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