China’s factories to quintuple advanced chip production
China’s largest chip manufacturers SMIC and Hua Hong Semiconductor, along with several Huawei-affiliated companies, plan to drastically increase production of advanced semiconductors amid growing demand from the artificial intelligence sector. This expansion involves ramping up or launching production of chips with 7 nm and even 5 nm technology nodes, despite US restrictions limiting China’s access to cutting-edge chipmaking equipment.
According to Nikkei Asia, China aims to boost monthly production of such chips from 20,000 to 100,000 within two years. The long-term goal is to reach a capacity of 500,000 chips per month by 2030.
This move reflects China’s ambitions for technological self-reliance and strengthening its position in the global semiconductor market, especially given the rapid growth of AI technologies.
