China’s SMIC Chips Exposed to Be High Cost Low Yield Rate; Won’t Challenge International Standards, Experts Say

The semiconductor chips manufactured by SMIC, the largest and most technologically advanced company in mainland China, have been found to be 40 to 50 percent more expensive than the chips made by a leading company in the industry—Taiwan’s TSMC of the same level. However, its yield rate—the number of chips considered good enough to ship to customers—is less than one-third of TSMC, according to a recent report. Experts pointed out that democratic countries continue to maintain advantages in the field of chip technology, posing a great challenge to China’s ruling Communist Party’s (CCP) ambition. Amid the international sanctions of advanced chips and chip-making equipment against the CCP led by the United States and the Netherlands, SMIC is trying to use existing manufacturing equipment previously imported from the United States and the Netherlands to produce 5-nanometer Kirin chips, as reported by “Financial Times” on Feb. 6. SMIC will produce the Kirin chips designed by Chinese company Huawei’s HiSilicon to be used in new versions of high-end Huawei smartphones. 5nm chips are still one generation behind the currently most advanced 3nm chips....