Huawei Shifts 14nm Orders from TSMC To Chinese SMIC Fabs

[Raphael]

https://www.tomshardware.com/news/tsmc-14nm-loses-huawei-hisilicon-orders

HiSilicon, Huawei's elite chip division, has placed 14nm orders with Semiconductor Manufacturing International (SMIC), China's top chipmaker, instead of TSMC, according to a DigiTimes report today citing unnamed industry sources.

HiSilicon's Kirin 710 smartphone processor, which is based on TSMC's 12nm FinFET node, has been out since mid-2018. There is a rumor that HiSilicon is planning to release a gimped variant of the Kirin 710, the Kirin 710A. Kirin 710A is expected to leverage the 14nm FinFET process and, thus, HiSilicon needs a fab that's capable of pumping out the chips.

U.S. may block TSMC from selling to Huawei, so that could be another reason why HiSilicon decided to switch from TSMC.

SMIC's first-generation 14nm FinFET process has been up and running since the fourth quarter of 2019. The Chinese fab's financial data reveals that the node contributed to about 1% of the company's total wafer revenue in Q4; however, SMIC plans to ramp up production progressively this year.

Although SMIC might seem like an underdog compared to TSMC, the Chinese chipmaker shouldn't be underestimated. SMIC is looking to skip the 10nm node completely and transition straight to the 7nm node. The company expects to run risk production of its 7nm process by the end of 2020. TSMC's EUV process is proceeding smoothly. HiSilicon is allegedly on TSMC's client list to leverage the EUV node; however, that'll depend on the outcome of the proposed U.S. block on Huawei.

China continues to push hard to phase out foreign tech and achieve self-sufficiency. SMIC is one of the pieces on the board that China can use to accomplish its goals.

 

[PakFactor]

https://www.tomshardware.com/news/tsmc-14nm-loses-huawei-hisilicon-orders

HiSilicon, Huawei's elite chip division, has placed 14nm orders with Semiconductor Manufacturing International (SMIC), China's top chipmaker, instead of TSMC, according to a DigiTimes report today citing unnamed industry sources.

HiSilicon's Kirin 710 smartphone processor, which is based on TSMC's 12nm FinFET node, has been out since mid-2018. There is a rumor that HiSilicon is planning to release a gimped variant of the Kirin 710, the Kirin 710A. Kirin 710A is expected to leverage the 14nm FinFET process and, thus, HiSilicon needs a fab that's capable of pumping out the chips.

U.S. may block TSMC from selling to Huawei, so that could be another reason why HiSilicon decided to switch from TSMC.

SMIC's first-generation 14nm FinFET process has been up and running since the fourth quarter of 2019. The Chinese fab's financial data reveals that the node contributed to about 1% of the company's total wafer revenue in Q4; however, SMIC plans to ramp up production progressively this year.

Although SMIC might seem like an underdog compared to TSMC, the Chinese chipmaker shouldn't be underestimated. SMIC is looking to skip the 10nm node completely and transition straight to the 7nm node. The company expects to run risk production of its 7nm process by the end of 2020. TSMC's EUV process is proceeding smoothly. HiSilicon is allegedly on TSMC's client list to leverage the EUV node; however, that'll depend on the outcome of the proposed U.S. block on Huawei.

China continues to push hard to phase out foreign tech and achieve self-sufficiency. SMIC is one of the pieces on the board that China can use to accomplish its goals.

If I'm not mistaken Chinese Govt. set up a $ 300B Fund to develop the Semi-Industry in China after the 1st wave of sanctions hit hard for Huawei. This is a move in the right direct and feel this will impact across the industry down the road 10-15 years time., US Semi's will feel the impact the most.

What Trump did was a blessing in disguise and it showed China their weakness and allowed them to get off their seats and take action -- had this happened down the road it would have been much worse for China.

 

[kankan326]

SMIC is looking to skip the 10nm node completely and transition straight to the 7nm node.

I think 7nm is good enough for phones. 5nm or 3nm is more like money waste.

 

[8888888888888]

Advance is always good, we don't want to be like the stupid Qing who think Cross Bow/Bow and Arrows can stand against Guns and Cannons. So 3nm and 5nm should be researched.

 

[tower9]

If I'm not mistaken Chinese Govt. set up a $ 300B Fund to develop the Semi-Industry in China after the 1st wave of sanctions hit hard for Huawei. This is a move in the right direct and feel this will impact across the industry down the road 10-15 years time., US Semi's will feel the impact the most.

What Trump did was a blessing in disguise and it showed China their weakness and allowed them to get off their seats and take action -- had this happened down the road it would have been much worse for China.

In the past, China's government poured billions in trying to build a competitive semiconductor industry. But progress was always very slow because most domestic Chinese electronics manufacturers found it easier to continue purchasing from their trusted suppliers and did not see a compelling reason to switch to an untested domestic supplier. But because of Trump's persecution of Huawei, he's basically cornered China's domestic companies into a corner and made them understand that unless they switch to a domestic supplier and support a domestic equivalent to the advanced chips they procured, their own lives were at stake. So I think this is propelling China's domestic industries forward in an urgency that never existed before.

 

[8888888888888]

So we should thank Trump for this.

 

[Beidou2020]

SMIC should buy the chip making equipment from domestic companies wherever possible.

 

[kankan326]

Advance is always good, we don't want to be like the stupid Qing who think Cross Bow/Bow and Arrows can stand against Guns and Cannons. So 3nm and 5nm should be researched.

Advance sometimes is a hurt to business. We should make a balance between quality and cost. I'm not saying to give up cutting-edge technology development.

 

[Safriz]

Thank you Donald trump

 

[8888888888888]

Advance sometimes is a hurt to business. We should make a balance between quality and cost. I'm not saying to give up cutting-edge technology development.

That's also the lame excuse the Qing had given when comparing Canals and Rail Roads saying it will cost too much and will hurt canal Business. Rail Roads were better in the end but the Qing didn't accept it until the 1900s.

 

[dBSPL]

In the past, China's government poured billions in trying to build a competitive semiconductor industry. But progress was always very slow because most domestic Chinese electronics manufacturers found it easier to continue purchasing from their trusted suppliers and did not see a compelling reason to switch to an untested domestic supplier. But because of Trump's persecution of Huawei, he's basically cornered China's domestic companies into a corner and made them understand that unless they switch to a domestic supplier and support a domestic equivalent to the advanced chips they procured, their own lives were at stake. So I think this is propelling China's domestic industries forward in an urgency that never existed before.

I don't think Trump has such a big role in this. It was already known on a sectoral scale but the USA's bringing this issue to the agenda made China's current capacity and huge infrastructure more visible.

 

[8888888888888]

It's still Trump, otherwise many Chinese companies would still buy from USA companies because it's cheaper and better than doing R&D.

 

[tower9]

I don't think Trump has such a big role in this. It was already known on a sectoral scale but the USA's bringing this issue to the agenda made China's current capacity and huge infrastructure more visible.

it’s still his administration. I think he started out the trade war wanting a big trade win but the national security team took over.

 

[8888888888888]

Still Trump's fault, he fired his old secretary of state when he said that Trump is nuts and replace him with a CIA guy.

 

[Beast]

That's also the lame excuse the Qing had given when comparing Canals and Rail Roads saying it will cost too much and will hurt canal Business. Rail Roads were better in the end but the Qing didn't accept it until the 1900s.

I dont think that will be an excuse. Look at USS Zumalt destroyer. Over pursue of technology and end up with an white elephant. The shape is revolution and very stealthy but compromise on function and combat capabilities. We need to manage carefully between revolution and evolution.