China Targets Self-Sufficiency in Semiconductor Production

A group of leading Chinese physicists and engineers recently assessed the country's semiconductor sector, characterizing it as fragmented and underdeveloped. They argue that the current industry structure does not effectively support China's aim for self-sufficiency, urging stakeholders to dispel any illusions about rapid progress. Among the notable contributors is Wang Yangyuan, a key figure from SMIC, now a professor at Peking University. The report emphasizes the need for a coherent strategy that is focused on building a robust domestic manufacturing base.

China plans to solidify its 28-nanometer process technology and achieve stable production at the 14-nanometer level by 2030. The call for entirely Chinese lithography systems indicates a significant pivot toward self-dependency in semiconductor manufacturing. With SMIC and Huawei currently limited in 7-nanometer chip production, the findings highlight a persistent technology gap compared to foreign competitors like TSMC, which is advancing towards 5nm processes by 2028. This endeavor underscores China's broader ambitions in national AI strategies and technology independence.