Chinese Chip Industry Leader Advocates Focus on Mature Nodes and 3D Packaging Innovations

Ye Tianchun Urges Chinese Tech Firms to Prioritize Legacy Chips Amid US Technological Blockades

 

In a significant strategic shift, Chinese tech companies are being advised to focus on innovations using mature process nodes and advanced packaging technologies rather than pursuing cutting-edge process nodes. This advice comes from Ye Tianchun, President of the Integrated Circuit Branch of the China Semiconductor Industry Association (CSIA) and Secretary-General of the China Integrated Circuit Innovation Alliance (CICIA). His call to action emerges in response to the ongoing technological blockade by the US, which restricts China’s access to the latest semiconductor technologies.

US Technological Blockades and China's Response

The United States has implemented strict measures to prevent China from acquiring advanced chips and the necessary tools for cutting-edge chip manufacturing. This includes blocking exports of high-end chips and prohibiting companies like ASML from servicing their lithography systems in China. These actions have significantly impacted China's leading foundry, SMIC, and have forced Chinese semiconductor firms to reconsider their technological trajectories.

Current Status of Chinese Semiconductor Industry

Despite concerted efforts to develop domestic semiconductor capabilities, China remains behind Western semiconductor giants in terms of performance and technology. For instance, Chinese CPU-maker Loongson has made strides, releasing processors comparable to 10th-gen Intel chips. However, they still lag by about five years when compared to the latest offerings from AMD, Intel, and Qualcomm.

China’s domestic semiconductor equipment manufacturers, such as Shanghai Micro Electronic Equipment Group (SMEE) and Naura Technology, are progressing but are yet to match the capabilities of industry leaders like ASML, especially in producing chips for the latest nodes.

Strategic Shift to Mature Nodes

Ye Tianchun emphasizes that Chinese companies should pivot towards enhancing mature nodes and architectural innovation. This strategy not only aligns with China's current strengths but also addresses the reality of technological constraints imposed by US sanctions. Ye points out that a significant portion of global semiconductor production, including nearly 80% of the 12 million 12-inch wafers produced annually by TSMC, relies on mature nodes rather than cutting-edge technologies.

Focusing on mature nodes offers several advantages. Firstly, it plays to China's existing strengths and capabilities. Secondly, it allows Chinese firms to meet the demand for high-quality legacy chips, which remain essential for a wide range of electronic devices and systems. This approach could position China as a leader in the production of mature-node chips, a market that is crucial yet often overlooked by Western competitors focused on the nanometer race.

Innovations in 3D Packaging and Back-End Processes

In addition to mature nodes, Ye Tianchun advocates for advancements in architectural innovations and back-end processes, such as 3D packaging. As Moore’s Law reaches its physical limits at 3nm and 2nm, alternative approaches to increasing transistor density and performance are becoming more important. Companies like Arm and Samsung are already exploring these new frontiers.

Ye suggests that Chinese semiconductor firms, still a few years behind in nanometer technology, should start working on architectural innovations at nodes as early as 7nm. Collaboration between chip designers and system packaging firms could lead to significant breakthroughs in this area, potentially giving China a competitive edge in architectural innovations and 3D packaging technologies.

Forging a New Path

The US’s restrictive measures have created an environment where Chinese tech companies must innovate within the constraints imposed upon them. By focusing on mature nodes and back-end technologies, Chinese firms can avoid direct competition with Western semiconductor giants and instead carve out a niche in areas that are critical yet underexplored by their competitors.

Ye Tianchun’s strategic advice aims to leverage China’s existing capabilities and foster innovations that align with the country’s long-term technological goals. This shift could lead to sustainable growth and technological advancements in the Chinese semiconductor industry, ensuring that China remains a key player in the global semiconductor market despite external challenges.

In conclusion, Ye Tianchun’s recommendations highlight a pragmatic approach for the Chinese semiconductor industry in the face of US technological blockades. By focusing on mature nodes and 3D packaging innovations, Chinese tech firms can capitalize on their strengths and ensure their continued relevance in the global market. This strategic shift not only addresses current technological limitations but also sets the stage for future advancements in the semiconductor industry.

__________________________________________________________________________

Vertical Bar Media

For more information on how to navigate the complexities of the tech industry and stay ahead of the competition, explore our Vertical Bar Media.

Source: Toms Hardware

Photo Credit: Shutterstock

Social Media Hashtags: #SemiconductorIndustry #TechInnovation #ChinaTech #DigitalTransformation