China reveals high-end microchip technology, worrying US officials

Lorenzo Bagnato

16 September 2024 - 23:01

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A Chinese company reportedly posted a patent for high-end microchip technology.

China reveals high-end microchip technology, worrying US officials

China-based Shanghai Micro Electronics Equipment Group (SMEE) reportedly patented its first Extreme Ultra Violet (EUV) machine. EUV technology is used to manufacture the world’s most cutting-edge microchips, and so far the Netherlands-based ASML is the only company to produce them in scale.

ASML, like many Western companies involved in microchip production, was heavily sanctioned for any trade with China. In response, China ramped up its efforts to create its domestic microchip industry, though it reportedly lags far behind its Western competitors.

One step at a time, however, this may change. According to the South China Post, two Chinese companies now manufacture Deep Ultra Violet (DUV) machines. Specifically, one with a resolution below 65nm and an overlay accuracy below 8nm and another with 110nm resolution and 25nm overlay accuracy.

By comparison, ASML’s DUV machines can operate at a resolution of below 38nm with an overlay accuracy of 1.3nm. Moreover, DUV machines are far less sharp than EUVs, which work on wavelengths dozens of times sharper.

However, if reports of SMEE’s patent are true, it means Chinese companies now have access to EUV technology as well.

The microchip war

Microchips are a vital component of today’s digital world. They power any digital device, from smartphones to high-end military equipment.

The microchip industry is multifaceted and extremely complex. Raw materials are harvested in China, microchips are designed by American companies and mostly manufactured in Taiwan with equipment made in the Netherlands.

In order to maintain its competitive edge, the United States tried to keep China out of the microchip production line. Both the Trump and Biden administrations imposed severe restrictions on microchip trade with China, limiting access to designs and equipment.

China is therefore forced to import its chips from abroad, mostly from Taiwan, a staunch US ally.

But a few cracks in the US embargo can sometimes be seen. Last year, the Chinese phone maker Huawei released a smartphone powered by a chip the company should not have had access to.

If Chinese companies now also have access to EUV technology, the gap between them and their US equivalent could be closed in a matter of years. Experts say China is roughly 15 years behind the US in microchip technology. But those are just rough estimates.

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