How has China developed its own 7-nanometer wafers despite US sanctions?

China has successfully developed its own 7-nanometer wafers despite being sanctioned by the US, and they have access to lower-level deep ultraviolet exposure machines.

What is the impact of the US blockade on China's ability to purchase EUV machines?

The US blockade prevents China from purchasing EUV extreme ultraviolet exposure machines from the Netherlands, but they still have access to lower-level deep ultraviolet exposure machines.

Can TSMC still sell older machines to China for producing 7nm wafers?

Yes, TSMC can still sell older machines to China that can produce 7nm wafers, despite the export control list.

What is the situation with DUV machines in China and Taiwan?

China heavily bought DUV machines before the US export control list was implemented, resulting in an overwhelming amount of DUVs in China, while Taiwan's Samsung and TSMC also purchased a significant amount of DUV and EUV machines.

Should there be concerns about Huawei's 5nm chips?

No, there is no need to panic about Huawei's 5nm chips as major wafer factories have already reached the limits of DUV technology at 7nm, and SMIC has already produced 7nm mining chips.

Unveiling the Truth Behind Huawei's 5G Phone Money Pit

Name: Unveiling the Truth Behind Huawei's 5G Phone Money Pit
Uploaded: 2023-09-13 15:32:53
Description: China's development of its own 7-nanometer wafers and the success of Huawei's Mate 60 phone, despite US sanctions, raises concerns about the nationalization of private chip manufacturers and the potential impact on Taiwanese chip factories.

This article is a summary of a YouTube video "踢爆華為5G手機錢坑真相！張忠謀台積電笑到發抖！沒突破拜登封鎖，還讓中芯獲利毛利率腰斬狂跌！美國半導體協會SIA秘密報告，中共補助華為上兆晶片業兩兆，燒錢燒到哭，小米OPPO挫賽｜中國仆街95" by 追劇時間Emmy

TLDR China's development of its own 7-nanometer wafers and the success of Huawei's Mate 60 phone, despite US sanctions, raises concerns about the nationalization of private chip manufacturers and the potential impact on Taiwanese chip factories.

Key insights

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"Yield rate is crucial for wafer manufacturing plants, and Zhang Zhongmou successfully improved the yield rate, making the foundry business model a success."
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China has provided over a trillion subsidies to Huawei's chip industry, resulting in significant financial losses for Xiaomi and OPPO.
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"If this machine makes 5nm chips this year, it will be called breaking through the blockade. You will really be scared to death." - The speaker suggests that the production of 5nm chips by a certain machine would be a significant breakthrough, causing fear among competitors.
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The tactic of claiming breakthroughs even when they haven't happened is a powerful tool used in external publicity and internal propaganda to create fear and shock.
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TSMC has pushed the limits of DUV technology to reduce the burden of EUV technology in the production of smaller and more advanced chips.
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Huawei received US$30 billion in government subsidies to build a wafer factory, and the Chinese government is planning to add another US$40 billion in large-scale semiconductor funds, making the Mate 60 phone subsidized by the tax dollars of the Chinese people.
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Chinese government subsidies heavily benefit Huawei, but are detrimental to Xiaomi, as shown by the sudden increase in market share for Xiaomi, Apple, OPPO, and Vivo after Huawei exited the market.
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"The real key to the development of military technology now is military AI. If military AI can’t take one step at a time, you will be beaten."

Q&A

How has China developed its own 7-nanometer wafers despite US sanctions?

— China has successfully developed its own 7-nanometer wafers despite being sanctioned by the US, and they have access to lower-level deep ultraviolet exposure machines.
What is the impact of the US blockade on China's ability to purchase EUV machines?

— The US blockade prevents China from purchasing EUV extreme ultraviolet exposure machines from the Netherlands, but they still have access to lower-level deep ultraviolet exposure machines.
Can TSMC still sell older machines to China for producing 7nm wafers?

— Yes, TSMC can still sell older machines to China that can produce 7nm wafers, despite the export control list.
What is the situation with DUV machines in China and Taiwan?

— China heavily bought DUV machines before the US export control list was implemented, resulting in an overwhelming amount of DUVs in China, while Taiwan's Samsung and TSMC also purchased a significant amount of DUV and EUV machines.
Should there be concerns about Huawei's 5nm chips?

— No, there is no need to panic about Huawei's 5nm chips as major wafer factories have already reached the limits of DUV technology at 7nm, and SMIC has already produced 7nm mining chips.

Timestamped Summary

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00:00
China successfully develops its own 7-nanometer wafers despite US sanctions, and the new Huawei Mate 60 phone is causing a sensation; TSMC can still sell older machines to China that can produce 7nm wafers despite export control.
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03:02
China's heavy purchase of DUV machines before the U.S. export control list led to an excess in China, while Taiwan's Samsung and TSMC also bought a significant amount, but major wafer factories have reached the limits of DUV technology at 7nm, so there is no need to worry about Huawei's 5nm chips.
📺

04:50
Huawei's claims of surpassing TSMC and Samsung in 5G technology are misleading, and TSMC employees are more concerned about the USMC labor union storm than the differences between DUV and EUV in high-end manufacturing.
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08:09
Repeated exposure in chip production leads to longer production time, higher costs, smaller quantities, and reduced yield, with the DUV process being costly and inefficient compared to EUV.
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10:26
Chinese manufacturers, including SMIC, are struggling to obtain photomasks due to export bans, resulting in low yield rates for their 7nm chips, while Huawei's government subsidies make their Mate 60 phone cheaper for consumers.
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14:03
Zhang Zhongmou's successful improvement of wafer manufacturing yield rate saves Apple billions, while SMIC's profits plummet due to Huawei orders, impacting Xiaomi and benefiting Huawei with continued Chinese government subsidies.
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16:46
Huawei's use of state subsidies to compete with private companies has led to the downfall of panel factories in other countries, while the US crackdown on Huawei has raised concerns about the nationalization of private chip manufacturers and potential repercussions for Taiwanese chip factories, which are secretly shipping components to Huawei despite regulations, but are now focusing on making AI chips due to the declining smartphone market, while the Chinese government is investing heavily in developing military AI.
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19:37
China's wafer manufacturing plants need to make money to progress, but without EUV exposure machines, it's challenging to make breakthroughs.