As the semiconductor race heats up, American analysts have previously estimated a five-year technological lag for Chinese chip manufacturers compared to global leaders. But a new perspective from Japanese analysts is shaking up the narrative, suggesting the gap could be as narrow as three years.

The latest insights come from TechanaLye, a Japanese firm renowned for its exhaustive analysis of tech components. The company dissects around 100 devices annually to benchmark performance and technology. According to their analysis, the technological divide between China’s SMIC and Taiwan’s TSMC may not be as wide as initially thought.

Image Source: Nikkei Asian Review, TechanaLye

TechanaLye’s comparison focuses on chip area and performance. They point to the HiSilicon 9000 processor from Huawei, introduced in 2021, which has a die size of 107.8mm². In contrast, the HiSilicon 9010 from SMIC, which was released this year, features a slightly larger die of 118.4mm² but offers comparable performance. This suggests a narrowing of the tech gap, with TechanaLye estimating a three-year lag for Chinese chip technology.

However, it’s not all smooth sailing for SMIC. Despite these promising figures, the yield rate of their 7nm chips remains less than optimal, impacting production economics. Nevertheless, on a purely technical level, SMIC is closing the gap with TSMC’s advanced capabilities.

A closer look at Huawei’s Pura 70 Pro smartphone further illustrates China’s growing semiconductor prowess. Out of the 37 key semiconductor components in the device, 14 are produced by Huawei’s HiSilicon, and another 18 come from other Chinese suppliers. Only five components are imported, including memory chips from SK hynix and motion sensors from Bosch. This means that a staggering 86% of the chips in this high-end smartphone are made in China, even if they carry foreign labels.

As the global semiconductor landscape continues to evolve, these insights highlight the shifting dynamics and the growing capabilities of Chinese tech giants. With the gap potentially narrowing, the competition between China and Taiwan is set to become even more intense.

Source:

Nikkei Asian Review

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