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Why Huawei’s 7nm Chip Isn’t a Big Chinese Breakthrough

Thought Leader: Peter Zeihan
September 13, 2023
Source: Peter Zeihan on Geopolitics

The Chinese telecom firm Huawei (the same firm that was caught modifying equipment on behalf of the Chinese government) has released a new phone with a seven-nanometer chip.

After some digging, it appears that this breakthrough is not as significant as I initially thought – and it comes down to what the Chinese have access to. They are using a process called deep ultraviolet (DUV) lithography, and while it gets the job done, its days are numbered in the cutting-edge field. Further, the unofficially reported yield rate Huawei achieved is nowhere near the industry standard.

The other process of creating these chips – extreme ultraviolet (EUV) lithography – is still only accessible to the Chinese via subsidies, poaching, and theft. So, I won’t be classifying the release of this phone as a “significant” breakthrough.

If the Chinese head down this path, it’s quite illuminating as to how far they’re willing to go for the sake of saving face. Should China keep this up, it’s just one more way they risk harming their position on the global stage.

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